The cash account of Dixon Products reveals the following information:

The bank statement for May contains the following information:

A comparison of detailed company records with the bank statement indicates the following information:

The bank amounts are determined to be correct.

Required:
1. Prepare a bank reconciliation for May.
2. Prepare the adjusting entries made by Dixon as a result of the reconciliation process.
3. What amount is reported for cash on the balance sheet at May31?

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Cash Balance, 4/30 Deposits duing May 11,800 37,600 Checks written during May 41,620 Bank balance, 4/30 Add: Deposits during May $11,750 37,250 $49,000 Less: Checks paid during May NSF check from Frolin, Inc. Bank service charges $40,230 190 40 40,460 $ 8,540 Bank balance, 5/31 At 5/31 $1,150 2,140 At 4/30 Deposit in transit Outstanding checks $800 750