A. Prepare the Bank Reconciliation

B. Prepare the necessary adjusting entries

P8.7 Pre adje inte cas LO The following information pertains to the Soldo Machinery Ltd. SOLDO MACHINERY LTD Bank Reconciliation as at 31 January 2013 Cash balance as per bank statement (overdrawn) Add: Unpresented cheques No. 170 $302 No. 183 60 No. 192 74 No. 193 186 Adjusted cash balance per Cash account in the ledger (Credit) $1050 622 1 672 The bank statement revealed a balance of $502 Cras at 28 February 2013. Prior to receipt of the bank statement, the totals of the cash receipts journal and the cash payments journal were $5552 and $3401 respectively. A comparison of the details on the bank statement with the details in the cash journals revealed the following facts: There were bank charges of $23. There was a dishonoured cheque from A. Rotundo for $50. There was interest earned on a fixed deposit of $25. The following cheques were not yet presented: No. 170 $302 No. 195 $ 70 No. 198 $ 104 Outstanding deposits not entered by the bank came to $150. There was an automatic lease payment of $175. The bank had made an error: cheque no. 979 for $80 was deducted from the account of Soldo Machinery Ltd; however, a call to the bank revealed that the cheque was drawn by Holdo Ltd, and would be adjusted next month. Bank adjustment to 3 February deposit of $9 credit. The bank found that a deposit slip had been incorrectly entered. A cheque received for $165 had been recorded on the deposit slip as $156. The cash receipts journal entry was correct