Shown below is the information needed to prepare bank reconciliation for Mandy Company on 31 October 2019:

1. (1) The cash ledger account showed a balance of $8,510, while the bank statement indicated a cash balance of $12,390.

2. (2) The bank statement showed $45 interest earned for the month of October.

3. (3) ZYX company settled its notes payable by depositing $4,000 directly into Mandys bank

   account.

4. (4) The company issued three checks totaling $1,000, which had not been shown in the bank

   statement in October.

5. (5) A $300 check mailed to the bank for deposit had not reached the bank on 31 October.

6. (6) A $710 deposit to Manning Company was erroneously credited to Mandys account by the bank.

7. (7) The bank returned a customers NSF check for $575 received as payment of an account

   receivable.

8. (8) A $2,500 check received from a tenant for rental revenue was recorded as $3,500 in the book.

Required:

1. (a) Prepare bank reconciliation for the month of October 2019. (12 marks)

2. (b) Prepare the necessary journal entries to update the accounting records. (6 marks)