1. The cash account for Santiago Co. on May 31 indicated a balance of $20,915. The March bank statement indicated an ending balance of $25,645. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

   a.		Checks outstanding totaled $5,975.
   b.		A deposit of $3,796 had been made too late to appear on the bank statement.
   c.		A check for $1,482 returned with the statement had been incorrectly recorded as $482. The check was originally issued to pay on account.
   d.		The bank collected $4,515 on a note left for collection of which $515 was interest revenue.
   e.		Bank service charges for May amounted to $70.
   f.		A check for $894 was returned by the bank because of insufficient funds.

   Prepare a bank reconciliation as of May 31.

   Santiago Co.
   Bank Reconciliation
   May 31
   Cash balance according to bank statement		$
   		$
   Adjusted balance		$
   Cash balance according to company's records		$
   		$
   	$
   Adjusted balance		$

   Journalize the necessary entries. Record the entry to increase cash first.

   If an amount box does not require an entry, leave it blank.

   May 31
   May 31