QUESTION 5(16 marks)

The cash account for Santiago Co. on May 31, 2021 indicated a balance of $15,515.00. The March bank statement indicated an ending balance of $20,245.00.Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

1.

Checks outstanding totaled $4,820.00

2.

A deposit of $3,796.00 had been made too late to appear on the bank statement.

3.

A check for $1,233.00 returned with the statement had been incorrectly recorded as $233.00.The check was originally issued to pay Bennett Co., the supplier.

4.

The bank collected $5,541.00 on a note from William Horn, a client of Santiago.

5.

Bank service charges amounted to $45.00.

6.

A check for $790.00 written by Mary Hunt, a customer, was returned by the bank because of insufficient funds.

Required:

a)make a bank reconciliation as of May 31, 2021 for Santiago Company. (10 marks)

b)Prepare journal entry to update the ledger (Explanation is not required)(6 marks)