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