Reference no: EM132805357
Question - The following transactions occurred at Chrysoberyl Inc. on December 31, 2020:
1. Bank account showed a balance of $38, 760
2. Cash balance per books, December 31 $29,840
3. Bank collected $12,400 note for Azurite Company in August, with an interest of $780. Collection fee was $115. Interest on the note has been accrued.
4. Deposit in transit $15,670
5. Checks outstanding on December 31 totaled $18,255
6. Bank statement showed NSF charge of $12,985
7. Bank statement showed charges of $375 for the service charge of maintaining the checking account.
8. Chrysoberyl Inc. issued check no. 413 for $1,875 to Aquamarine Company on account. This check, which was cleared by bank in November, was incorrectly journalized and posted by Chrysoberyl Inc. for $18, 750. This check had been issued to pay for purchases of Equipment.
9. Check No.128 in the amount of $4,320 had been entered in the cash journal as $3,420, this check had been issued to pay for purchases of supplies
10. There was a cancelled check of $9,345 issued by Hessonite Company that was incorrectly charged to Turquoise Co. by the bank.
Required -
1. Prepare the bank reconciliation at December 31, 2020.
2. Journalize the adjusting entries at December 31, 2020.