Waterway Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the company's Cash account per its general ledger showed a balance of $7,108.80. The bank statement from Emporia State Bank on that date showed the following balance. Emporia State Bank Checks and Debits Deposits and Credits Daily Balance XXX XXX 5-31 8,110.50 A comparison of the details on the bank statement with the details in the Cash account revealed the following facts. 1. The statement included a debit memo of $40 for the printing of additional company checks. 2. 3. 4. 5. Cash sales of $710.12 on May 12 were deposited in the bank. The cash receipts entry and the deposit slip were incorrectly made for $760.12. The bank credited Waterway Company for the correct amount. Outstanding checks at May 31 totaled $481.60, and deposits in transit were $2,063.90. On May 18, the company issued check No. 1181 for $684 to H. Moses, on account. The check, which cleared the bank in May, was incorrectly journalized and posted by Waterway Company for $648. 6. $3,600 was collected from a customer's note receivable by the bank for Waterway Company on May 31 through electronic funds transfer. Included with the canceled checks was a check issued by Tomins Company to C. Pernod for $450 that was incorrectly charged to Waterway Company by the bank. 7. On May 31, the bank statement showed an NSF charge of $440 for a check issued by Sara Ballard, a customer, to Waterway Company on account. (a) Prepare the bank reconciliation at May 31, 2022. (List items that increase cash balance first.) WATERWAY COMPANY Bank Reconciliation Cash Balance Per Bank Statement Add : Deposits in Transit Bank Error-Tomins May 31, 2022 206390 450 $ 811050 Less : NSF Check Error in May 12 Deposit Error in Recording Check No.1181 Check Printing Charge Adjusted Cash Balance Per Books 440 36 40 $ (b) Prepare the necessary adjusting entries for Waterway Company at May 31, 2022. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation May 31 Debit Credit May 31 (To record receipt of electronic funds transfer)