Ivan Enterprise's bank statement for the month of May showed a balance per bank of $3,025. The company's Cash account in the general ledger had a balance of $2,220 at May 31. Other information is as follows:

(1) Cash receipts for the last week of May recorded on the company's books were $2,200 but this amount does not appear on the bank statement.

(2) The bank statement shows a debit memorandum for $40 for check printing charges.

(3) Check No. 189 payable to T. Francis Company was written for $230, but recorded in the records for $320.

(4) The total amount of checks still outstanding at May 31 amounted to $2,610.

(5) A check for $325 drawn by Irving Enterprises was included in the bank statement. The check had cleared Ivans account and was deducted by the bank from Ivans balance.

(6) The bank returned an NSF check from a customer for $420.

7. The bank included a credit memorandum for $1,090 that represents collection of a customer's note by the bank for the company; principal amount of the note was $1,000 and interest was $90. Ivan had accrued the interest on the note.

Instructions

(a) Prepare a bank reconciliation for Ivan Enterprises at May 31.

(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.