On May 31, 2016, JB Games Ltd. received its bank statement from the East Coast Savings Bank showing that JB had a balance of $12,200. The company’s general ledger showed cash balance of $8,600 at that date. A comparison of the bank statement and the accounting records revealed the following information:

1. A cheque from one of JB’s customers in the amount of $1,120 that had been deposited during the last week of May was returned with the bank statement as NSF.

2. Bank service charges for the month were $55.

3. The company had written and mailed out cheques with a value of $4,235 that had not yet cleared the bank.

4. Cheque #791, which was a payment for advertising expenses of $230, was incorrectly recorded in the general ledger as $320.

5. During the month, the bank collected a $2,000 note receivable plus the outstanding interest on behalf of JB. The note was interest-bearing at 5% per annum and had been outstanding for one year.

6. The cash receipts for May 31 amounted to $1,650 and had been deposited in the night drop slot at the bank on the evening of May 31. These were not reflected on the bank statement for May.

Required:

a. Prepare the bank reconciliation for JB at May 31, 2016.

b. Prepare any journal entries necessary as a result of the bank reconciliation prepared in part “a.”