A bank statement received by Allied Ltd for the month of February 2022 showed a credit balance of $8,500. The company's Cash at Bank balance as per company records had a debit balance of $9,145. The following were discovered as the reasons for the discrepancy between the two balances:

1. The bank statement included a debit entry of $90 for the annual bank service fee.

2. Outstanding EFTs at 28 February totalled $6,200.

3. On 28^th February, receipts deposited amounting to $8,820 are still outstanding with the bank.

4. Cash sales of $694 on 20 February were deposited in the bank. The cash receipts journal entry and the deposit slip were wrongly made for $649. The bank credited Allied Ltd for the correct amount.

5. Notes receivable of $1,800 was collected by the bank for Allied Pty Ltd on 28 February plus $220 interest. No interest has been accrued on the note.

Required

a. Prepare a bank reconciliation at 28^th February 2022 based on the provided information. (3.5 marks)

b. Prepare journal to record the necessary adjusting entries at 28^th February 2022 (3.5 marks). Narrations are not required.