You are given the following information for River Adventures Company 1 answer below »

 
   

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You are given the following information for River Adventures Company:

RIVER ADVENTURES COMPANY

Bank Reconciliation

April 30, 2008

Cash balance per bank $9,009

Add Deposits in transit 846

9,855

Less: Outstanding cheques

#526 $1,358

#533 279

#541 363

#555 79 2,079

Adjusted cash balance per bank $7,776

The adjusted cash balance per bank agreed with the cash balance per books at April 30, 2008. The May bank statement showed the following:

RIVER ADVENTURES COMPANY

Bank Statement

May 31, 2008

Date

Cheques and Other Debits

Deposits

Number

Amount

Amount

BalanceApr. 30

May 3

4

6

6

10

10

13

13

14

18

18

19

21

25

26

28

31526

541

556

557

559

561

562

563

564

565

NSF

SC$1,358

363

223

1,800

1,650

799

2,045

2,487

603

1,033

440

25$ 846

1,250

980

426

1,650

222

980

1,771

$9,009

8,497

8,134

7,911

7,361

8,341

6,691

7,117

8,767

7,968

5,923

6,145

3,658

3,055

2,022

3,002

4,333

4,308

Additional information from the bank statement: The deposit of $1,650 on May 13 is an electronic transfer from a customer in payment of its account. The amount includes $35 of interest, which River Adventures Company had not previously accrued.The NSF for $440 is for a $425 cheque from a customer, Ralph King, in payment of his account, plus a $15 processing fee.SC represents bank service charges for the month.The bank made an error when processing cheque #564. The company also made two errors in the month. All cheques were written to pay accounts payable, all cash receipts were collections of accounts receivable.

Instructions

(a) Calculate the unadjusted cash balance in River Adventures general ledger at May 31.

(b) Prepare bank reconciliation and the necessary adjusting journal entries at May 31.