On 31 March 2022, Taco Ltd had a Cash at Bank balance as per company records of $8,100 debit. The bank statement received from Stanley Morgan Bank showed a credit balance of $8,760. As an Accountant at Taco Ltd responsible for preparing bank reconciliation, the chief financial officer provided you with the following additional information:

1. On 22 March Taco Ltd authorised an EFT (Ref no. 111) for $340 to L. Lilly on account. The EFT, which was processed by the bank in March, was incorrectly journalised and posted by Taco Ltd for $430.

2. Outstanding EFTs at 31 March totalled $5,400.

3. While the companys record showed $5,540 was deposited by Taco Ltd, the amount has not been recorded yet by the bank as at 31 March.

4. On 31 March the bank statement showed a reversal entry of $320 that had been originally deposited by M. Morgan, a customer, to Taco Ltd.

5. A $940 note receivable was collected by the bank for Taco Ltd plus $90 interest. Taco Ltd has not accrued any interest on the note.

Required

a. Prepare a bank reconciliation at 31 March 2022 based on the provided information.

b. Prepare journal to record the necessary adjusting entries at 31 March 2022.