Reference no: EM132817935

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.

Instructions

Problem 1. Prepare the bank reconciliation at December 31, 2020.

Problem 2. Journalize the adjusting entries at December 31, 2020.