1.Prepare bank reconciliation statement and adjusting entries.Shoe City Pty Ltds bank reconciliation clerk is unable to reconcile the bank balance at 31 January. The balance of the cash at bank account, before any entries for transactions initiated by the bank, was $4770.20 in the company records. The clerks attempt at the bank reconciliation statement is as follows:

Cash balance as per bank statement $4 392.20 Cr

Add: Dishonoured cheque $516.00

Less: Bank charges $30.00

Less: Outstanding deposits $708

Add: Unpresented cheques $876.00

Cash balance as per company records $5046.2

Required

(a) Prepare a correct bank reconciliation.

(b) Journalise the entries required by the reconciliation.