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PSA$7\mathrm{.}5$ Prepare bank reconciliation statement and adjusting entries. $($LO$4)$

On $31$ May $2023$ Sunflower Ltd had a cash balance as per company records of $$5681\mathrm{.}50$ debit. The bank statement from Community Bank on that date showed a credit balance of $$7784\mathrm{.}60.$ A comparison of the statement with the cash account revealed the following facts.

The statement included a debit entry of $$60$ for the annual bank service fee.

Cash sales of $$836\mathrm{.}15$ on $12$ May were deposited in the bank. The cash receipts journal entry and the deposit slip were incorrectly made for $$846\mathrm{.}15.$ The bank credited Sunflower Ltd for the correct amount.

Outstanding EFTs at $31$ May totalled $$1276\mathrm{.}25,$ and outstanding deposits were $$836\mathrm{.}15.$

On $18$ May Sunflower Ltd authorised an EFT $($Ref no$.1181)$ for $$685$ to M$.$ Helms on account. The EFT, which was processed by the bank in May, was incorrectly journalised and posted by Sunflower Ltd for $$658.$

A $$3000$ note receivable was collected by the bank for Sunflower Ltd on $31$ May plus $$80$ interest. The bank charged a collection fee of $$20.$ No interest has been accrued on the note.

On $31$ May, the bank informed Sunflower Ltd$.$ that they had been incorrectly charged $$600$ by the bank. This amount will be added back to Sunflower Ltd$\text{'}$s account on $1$ June.

On $31$ May the bank statement showed a reversal entry of $$700$ that had been originally deposited by W$.$ Hoad, a customer, to Sunflower Ltd$.$

Required

$($a$)$ Prepare the bank reconciliation as at $31$ May $2023.$

$($b$)$ Prepare the necessary adjusting entries as at $31$ May $2023.$

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