The following information is available to the accountant of Hilary Company when preparing the monthly bank reconciliation:

Outstanding cheques $500

Bank service charges 50

Deposits in transit 1,500

Customer note receivable collected by bank 975

Cash balance per ledger (prior to reconciliation) 1,340

a). Assuming the bank doesnt make any error, what should be the unadjusted cash balance on bank statement?

b). Prepare adjusting journal entries to record all the necessary adjustments to bring the Cash account to its correct balance. Note: No need to present the bank reconciliation.