The assistant prepared the following bank reconciliation statement. It appears that the statement is unacceptable and the task of preparing a proper reconciliation falls upon you.

Aqua Company
Bank Reconciliation
May 31, 2020
Balance per books May 31				$	9,525
Add:
Electronic Fund Transfer	$	1,075
Deposit in transit		2,470			3,545
				$	13,070
Deduct:
Bank charges	$	15
NSF cheque, Rhonda Teal		510
Outstanding cheques		1,815
Error in cheque #78: correctly issued and processed by the bank for $772, but incorrectly recorded in the books as $731 (Accounts PayableDelta Co.)		41			2,381
Indicated bank balance				$	10,689
Balance per bank statement					9,379
Discrepancy				$	1,310

Required: 1. Prepare a proper bank reconciliation showing the true Cash balance. 2. Prepare the necessary journal entries.