Reprieve Company received a bank statement for the month of October 2021, which showed a balance per the bank of $3,102. The companys cash account in the general ledger showed a debit balance of $1,204 at October 31, 2021. Other information that may be relevant in preparing a bank reconciliation for October 2021 follows:

1. The company recorded cash receipts of $440 on October 31, 2021, but this amount does not appear on the bank statement.

2. The bank included with its statement a credit memorandum for $1,308, representing collection of a note receivable by the bank for the company; the principal amount of the note was $1,200 and the remainder was interest.

3. Checks written in October 2021 which have not been paid by the bank at October 31, 2021 amounted to $1,200

. 4. A check correctly written and processed by the bank for $1,940 was incorrectly recorded in the cash payments journal for $1,490. The check was a payment on account to a supplier, Company A.

5. Checks which were written in September 2021 but still had not been presented to the bank for payment at October 31, 2021 amounted to $780.

6. The bank included with its statement a $20 debit memorandum for service charges for the month of October 2021.

7. The bank returned an NSF check from a customer for $480. This has not yet been recorded in Reprieves books. Required:

a) Prepare a bank reconciliation for Reprieve Company as at October 31, 2021. (10.5 marks)

b) Prepare the journal entries that the company should make at October 31, 2021. (4.5 marks)