Please solve both the sub-division with a detailed explanation. The Cash in Bank account balance on April 30 was $13,991. In reviewing checks returned by the bank,the accountant discovered that check No. 811, written for $541 for delivery expense, was recorded in thecash disbursements journal as $451. The NSF check for $500 was that of customer R. Koppa, depositedin April. Interest for April added to the account by the bank was $95.Requireda. Prepare a bank reconciliation for Adam Company at April 30.b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with thereconciled cash balance on the bank reconciliation. LOS P7-5B. Bank Reconciliation The bank reconciliation made by Adam Company, a sole proprietorship, onMarch 31 showed a deposit in transit of S1,300 and two outstanding checks, No. 797 for $550 and No.804 for $690. The reconciled cash balance on March 31 was $12,020.The following bank statement is available for April 30:MRCBank StatementтоAdam CompanyFairbanks, AKApril 30FAIRBANKS NATIONAL BANKDateDeposits No.DateChargesDateBalanceMar.$ 690 Apr.31... $11,960Apr.$1,300804Apr.13,26012,57013,520..1,6801,2501,0208077308081,2408383.13B0912,692188408101,0405411313,171....239908111612,131271,340813276401812,471301,160814236002312,8613095INNSFSC18305002713,56114,7764030Item Codes: EC: Error CorrectionSC: Service ChargeIN: Interest EamedDM: Debit MemoOD: OverdraftNSF: Non-sufficient FundsCM: Credit MemoRT: Retumed ItemA list of deposits made and checks written during April is shown below:O Cambridge Business PublishersChapter 7 Internal Control and Cash365Deposits MadeChecks WrittenApr.2..No. 807$ 730$1,6801,2508081,240101,020809838810811812178401,04022990451948640241,340291,160813301,425814600815816372875$9,705.......$7,73437769

a. Calculation of Bank reconciliation statement : Given, cash account balance as on April 30 =…

The Cash in Bank account balance on April 30 was $13,991. In reviewing checks returned by the bank, the accountant discovered that check No. 811, written for $541 for delivery expense, was recorded in the cash disbursements journal as $451. The NSF check for $500 was that of customer R. Koppa, deposited in April. Interest for April added to the account by the bank was $95. Required a. Prepare a bank reconciliation for Adam Company at April 30. b. Prepare the necessary journal entries to bring the Cash in Bank account into agreement with the reconciled cash balance on the bank reconciliation.