As of May 31, 2013, the bank statement showed an ending balance of $26,100. The unadjusted

As of May 31, 2013, the bank statement showed an ending balance of $26,100.  The unadjusted Cash account balance was $27,350.  The following information is available:

1. Deposit in transit, $6,981

2. Credit memo in bank statement for interest earned in May, $36

3. Outstanding check, $5,720

4. Debit memo for service charge, $25

Required

a. Determine true cash balance by preparing a bank reconciliation as of May 31, 2013, using the preceeding information.

b. Record in general journal format the adjusting entries necessary to correct the unadjusted book balance.