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Bank Reconciliation On May $31,$ the Cash in Bank account of Wallace Company, a sole proprietership, had a balance of $$6,734\mathrm{.}75$

On that date, the bank statement indicated a balance of $$8,726\mathrm{.}85.$

A comparison of returned checks and bank'advices revealed the following:

Deposits in transit May $31$ totaled $$2,979\mathrm{.}96$

Outstanding checks May $31$ totaled $$3,397\mathrm{.}08$

The bank added to the account $$30\mathrm{.}58$ of interest income earned by Wallace during May.

The bank collected a $$2,640$ note receivable for Wallace and charged a $$22$ collection fee. Both items appear on the bank statement.

Bank service charges in addition to the collection fee, not yet recorded were $$22\mathrm{.}00.$

Included with the returned checks is a memo indicating that $L.$ Ryder's check for $$754\mathrm{.}60$ had been returned NSF$.$

Ryder, a customer, had sent the check to pay an account of $$770\mathrm{.}00$ less a discount of $2\%$

Wallace Company incorrectly recorded the payment of an account payable as $$759\mathrm{.}00$ the check was for $$1,056\mathrm{.}00.$

Required

a$.$ Prepare a bank reconciliation for Wallace Company at May $31.$

b$.$ Prepare the journal entry $($or entries$)$ necessary to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.

Note: Do not round answers $-$ enter using two decimal places, when needed.

Bank reconciliation

Journal entries

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