On 31 December 2020, the Cash at Bank balance in the general ledger of Terry Jones Ltd showed a debit balance of $10,163. The bank statement received from Citigroup Bank has a credit balance of $12,120. As a new Accounting trainee at Terry Jones Ltd responsible for preparing bank reconciliation, the chief financial officer provided you with the following additional information:

1. The bank statement showed a debit entry of $120 for bank fees.

2. While the companys record showed $5,500 was deposited by Terry Jones Ltd, the amount has not been recorded yet by the bank as at 31 December.

3. Terry Jones Ltd issued a cheque # 220 for the payment of electricity. While the cheque was correctly written and paid by the bank for $560, the amount was wrongly journalised and posted as $650 by Terry Jones Ltd.

4. Unpresented cheques at 31 December, $6,300.

5. A $1,100 note receivable was collected by the bank for Terry Jones Ltd plus $200 interest. The bank charged collection fee of $50. Terry jones Ltd has not accrued any interest on the note.

6. Cheque # 44, a payment to accounts payable, was correctly written and paid by the bank for $770. The amount entered into the cash payment journal for Cheque #44 was for $707.

Required

a. Prepare a bank reconciliation at 31 December 2020 based on the provided information. (4 marks)

b. Prepare journal to record the necessary adjusting entries at 31 December 2020. (5 marks). Narrations are not required.