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.