UserPrepare bank reconciliation and related entries.Wallace COMPANYBank ReconciliationApril $30,2024$Cash Balance per bank$9009$Add: Deposits in transit$8469855$Less: Outstanding cheques#$5261358$#$533279$#$541363$#$555792079$Adjusted cash balance per bank$7776$The unadjusted cash balance at May $31$ was $$1,075.$ The May bank statement showed the following:Wallace COMPANYBank StatementMay $31,2024$Cheques and Other DebitsDepositsRunning DateNumberAmountor CreditsTotalApr. $309009$May $15261358846849725413638134655622379116557180012507361998083411255916506691134267117131650876714561799796816562204559232022261452156324873658225646033055235651033202227980300228$NSF$5401771423331$SC$454188$Additional information from the bank statement:$1.$ The deposit of $$1,650$ on May $13$ is an electronic transfer from a customer in payment of its account. The amount includes $$35$ of interest, which Wallace Company had not previously accrued$\mathrm{.}2.$ The NSF for $$540$ is for a $$525$ cheque from a customer, J$.$ Kumi, in payment of his account, plus a $$15$ processing fee. The company's policy is to pass on all NSF processing fees to the customer$\mathrm{.}3.$ SC represents bank service charges for the month$\mathrm{.}4.$ The bank made an error when processing cheque #$564.$ The company also made two errors in the month. All cheques were written to pay accounts payable; all cash receipts were collections of accounts receivable.The company's recorded cash payments and cash receipts for the month were as follows:Cash ReceiptsCash PaymentsDate AmountDateCheque No$.$ AmountMay $51250$May $2556223898055571800124267558943182227559165025890856089028177112561799311286155622045$Total$68251656328872056430623565103330566950$ Total $13526$Instructionsa. Prepare a bank reconciliation.b$.$ Prepare the necessary adjusting journal entries at May $31.$