Ul Sandburg's accounts Instructions Prepare a schedule showing the income statement effects for the P7-12 (L08) (Petty Cash, Bank Reconciliation) is reviewin service. Jovi's review will focus on the petty the bank year ended December 31, 2017, as a result of the above facts. ciliation) Bill Jovi is reviewing the cash accounting for Nottleman, nc . a local mailing cash account and the bank reconciliation for the month ended May 31,2017. He has he following information from Nottleman's bookkeeper for this task. Petty Cash 1. The petty cash fund was established on May 10, 2017, in the amount of $250. 2. Expendi itures from the fund by the custodian as of May 31, 2017, were evidenced by approved receipts for the following Postage expense Mailing labels and other supplies LO.U. from employees Shipping charges (to customer) Newspaper advertising Miscellaneous expense $33.00 65.00 30.00 57.45 22.80 15.35 On May 31,2017, the petty cash fund was replenished and increased to $300; currency and coin in the fund at that time totaled $26.40 Bank Reconciliation THIRD NATIONAL BANK BANK STATEMENT Disbursements Receipts Balance $8,769 Balance, May 1, 2017 Deposits Note payment direct from customer (interest of $30) Checks cleared during May Bank service charges Balance, May 31, 2017 $28,000 930 $31,150 27 6,522 Problems 375 Nottleman's Cash Account Balance, May 1, 2017 Deposits during May 2017 Checks written during May 2017 $ 8,850 31,000 (31,835) Deposis in transit are determined to be $3,000,and checks outstanding at May 31 total $850. Cash on hand (besides petty cash) at May 31, 2017, is $246. Instructions (a) Prepare the journal entries to record the transactions related to the petty cash fund for May (b) Prepare a bank reconciliation dated May 31,2017, proceeding to a correct cash balance, and prepare the journal entries necessary to make the books correct and complete. (c) What amount of cash should be reported in the May 31, 2017, balance sheet