On April 30, the bank reconciliation of Drofo Company shows three outstanding checks: No. \(254 \$ 650\), No. \(255 \$ 820\), and No. \(257 \$ 410\). The May bank statement and the May cash payments journal show the following:

\section*{Instructions}
Using step 2 in the reconciliation procedure, list the outstanding checks at May 31.
Prepare bank reconciliation and adjusting entries.
(SO 7)

Transcribed Image Text:

Bank Statement Checks Paid Cash Payments Journal Checks Issued Date Check No. Amount Date Check No. Amount 5/4 254 650 5/2 258 159 5/2 257 410 5/5 259 275 5/17 258 159 5/10 260 925 5/12 259 275 5/15 261 500 5/20 261 500 5/22 262 750 5/29 263 480 5/24 263 480 5/30 262 750 5/29 264 360