P$7\mathrm{.}7$B $($LO $3)($Prepare bank reconciliation and journal entries.$)$ The bank portion of last month$$s bank reconciliation showed the following for River Adventures Ltd$.$:River Adventures Ltd$.$Bank ReconciliationApril $30$Cash balance per bank$$12,612$Add: Deposits in transit$4,23016,842$Less: Outstanding cheques#$533$$$1,860$#$5419822,842$Reconciled cash balance$$14,000$The reconciled cash balance per bank agreed with the reconciled cash balance per books after the bank reconciliation at April $30.$ The May bank statement showed the following:River Adventures Ltd$.$Bank StatementMay $31$DateDescriptionAmounts Deducted from Account $($Debits$)$Amounts Added to Account $($Credits$)$BalanceApr$\mathrm{.}30$Opening balance$12,612$May$1$Deposit$4,23016,8423$Cheque, No$.54198215,8604$Cheque, No$.5331,86014,0006$Cheque, No$.5421,62012,3806$Deposit$2,11414,49410$Cheque, No$.5432,21012,28418$EFT, collection from A$.$ Osborne$1,47513,75919$Cheque, No$.54492612,83328$Deposit$1,81914,65228$Returned cheque$$NSF$,$ R$.$ Lajeunesse$1,10513,54728$NSF fee$4513,50230$EFT, prepaid insurance payment$92712,57531$Bank service charges and debit and credit card fees$9512,480$River Adventures$$ cash receipts and payments for the month of May showed the following:Cash ReceiptsDateAmountMay$6$$$2,114281,819311,524$$$5,457$Cash Payments$$Date$$NumberAmountMay$5542$$$1,62075432,12015544926315451,535$$$6,201$Additional information:The bank made an error when processing cheque #$543.$The EFT collection from A$.$ Osborne was a payment on account and was not previously recorded by River Adventures.The EFT collection from R$.$ Lajeunesse was not previously recorded.Because the EFT for prepaid insurance payment occurred near the end of the month, it has not been recorded yet.InstructionsCalculate the cash balance per books at May $31,$ prior to reconciliation.What is the amount of the deposits in transit at May $31?$What is the amount of the outstanding cheques at May $31?$Prepare the bank reconciliation at May $31.$Prepare any journal entries required from the reconciliation.