reconciling items in Katsaris Company's bank reconciliation P7.10B (LO 4) AP You are given the following information for River Adventures Company: Prepare bank reconcili related entries. RIVER ADVENTURES COMPANY Bank Reconciliation April 30, 2021 Cash balance per bank Add: Deposits in transit $9,009 846 9,855 (continued) Less: Outstanding cheques $1.158 279 533 6541 2,079 Adjusted cash balance per bank The unadjusted cash balanse at Me s $1.075. The Maybank statement showed the following: RIVER ADVENTURES COMPANY Bank Statement May 31, 2021 Cheques and Other Debits Number Amount Deposits Date Apr 30 May 1 536 $1.158 S 846 541 $9.009 8.497 8,134 7.911 7,361 1.800 1.250 980 1,650 1.650 6.691 7,117 8,767 7.968 5,923 6,145 799 2,045 222 2,487 603 1,033 565 3.055 2.022 3.002 4,313 4,308 NSF Additional information from the bank statement: 1. The deposit of $1,650 on May 13 is an electronic transfer from a customer in payment of its account. The amount includes $35 of interest, which River Adventures Company had not previ ously accrued. 2. The NSF for 5-10 is for a $425 cheque from a customer, Ralph King, in payment of his account, plus a $15 processing fee. The company's policy is to pass on all NSF processing fees to the customer 3. SC represents bank service charges for the month. 4. The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were written to pay accounts payable; all cash receipts were collections of accounts receivable. The company's recorded cash payments and cash receipts for the month were as follows: Cash Receipts Cash Payments Date Amount Date Cheque No. Amount May 5 $1,250 556 $ 223 980 1.800 558 1.650 890 1.771 1.286 2043 Total 56,825 2,887 May 2 560 561 1,033 566 Total DA Problems Instructions a. Prepare a bank reconciliation. b. Prepare the necessary adjusting journal entries at May 31. Taking It Further How would you know if the bank has made an error in your account? Does quire an adjustment to your hanke