A company's bank statement on May 31 and ledger accounts for May are summarized below.
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BANK STATEMENT
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Checks
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Deposits
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Balance
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Balance, May 1
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$8,100
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Depots during May
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$17,000
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25,100
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Checks cleared during May
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$19,200
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5,900
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Bank service charges
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30
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5,870
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Balance, May 31
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5,870
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Cash (A)
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May 1 Balance
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$8,100
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May Checks written
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$23,150
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May Deposits
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$19,760
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Ending Cash Balance
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$4,710
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A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $3,950. A deposit of $2,760 is in transit at the end of May.
Reconcile the bank account. Give the journal entries that should be made as a result of the bank reconciliation. Compute the balance in the Cash account after the reconciliation entries.