1. Entity A is preparing its February 28, 20x1 bank reconciliation statement. The following information was determined:

• Cash balance per accounting books, Feb. 28, 20x1 260,000
• Cash balance per bank statement, Feb. 28, 20x1 205,000

When investigating the difference, the accountant determined the following:

1. A customer deposited 30,000 to Entity As bank account as payment for an account receivable. This is not yet recorded in the books of accounts.
2. A 102,500 check deposited by Entity A during the month is not yet credited to Entity As account.
3. A check drawn in the amount of 22,500 is not yet presented to the bank for payment.
4. The bank returned a check deposit amounting to 5,000 because of insufficiency in the funds of the drawer. The check was received from a customer as payment for accounts receivable.

Requirements:

1. Prepare the bank reconciliation.

Prepare the adjusting (reconciling) entries