Question 2 On May 31, 2017, Marrell Ltd. had a cash balance per books of $6,781.50. The bank statement from Home Town Bank on that date showed a balance of $6,824.60. A comparison of the statement with the Cash account revealed the following facts. 1. The statement included a bank charge of S60 for the printing of additional company checks. Cash sales of $836.15 on May 12 were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $886.15. The bank credited Marrell Company for the correct amount. Outstanding checks at May 31 totaled S256.25. Deposits in transit were $1,916.15. On May 18, the company issued check No. 1181 for S685 to Barry Dietz to settle the account payable. The check, which cleared the bank in May, was incorrectly journalized and posted by Marrell for $658 A $3,000 note receivable was collected by the bank for Marrell on May 31 plus $80 interest. No interest has been accrued on the note. 2. 3. 4. 5. 6. Included with the cancelled checks was a check issued by Bridges ple to Jon Newton for $600 that was incorrectly charged to Marrell by the bank. 7. On May 31, the bank statement showed an NSF charge of $640 for a check issued by Sandy Grifton, a customer, to Marrell on account. Required: (a.) Prepare the bank reconciliation at May 31, 2017. (b.) Prepare the necessary adjusting entries for Marrell at May 31, 2017. 2