Adjusting the cash account As of May 31, 2004, the bank statement showed an ending balance of \($17,250\). The unadjusted Cash account balance was \($16,450\). The following information is available:

1. Deposit in transit, \($2,630\) .

2. Credit memo in bank statement for interest earned in May, \($12\) .

3. Outstanding check, \($3,428\) .

4. Debit memo for service charge, \($10\) .

Required:

Determine the true cash balance by preparing a bank reconciliation as of May 31,2004, using the preceding information.