1. On December 31, 2021, Ibrahim received his bank statement with a balance of SAR 30,000; the cash general ledger account on that date shows a balance of SAR 50,000.

Ibrahims accountant showed the following:

• The bank returned a customers NSF check for SAR 24,500 received as payment on account receivable.
• The bank statement showed SAR 500 interest earned during December.
• Outstanding checks totaled SAR 5,000
• SAR 1,000 check mailed to the bank for deposit had not reached the bank at the statement date.

Required:

1. Prepare bank reconciliation.
2. Pass adjusting entries.