In auditing Train Company, you obtain directly from the bank Trains bank statement, canceled checks, and other memoranda which relate to the companys bank account

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In auditing Train Company, you obtain directly from the bank Train€™s bank statement, canceled checks, and other memoranda which relate to the company€™s bank account for December 2016. In reconciling the bank balance on December 31, 2016, with that shown on Trains€™s books, you observe the following facts:

Required:
1. Prepare a reconciliation of Train€™s bank account.
2. Prepare journal entries to adjust Train€™s books to reflect the correct bank balance on December 31, 2016.

1. Balance per bank statement 2. Balance per books 3. Outslanding checks, 12/31/16 4. Receipts of 12/31/16 deposited on 1/1/17 5. Service chorge for December 6. Proceeds of bank loan, 12/15/16 omitted from company records (discounted for $91,174.63 59,088.46 33,378.82 5,317.20 22.50 3 months at 12% per year) 7. Deposit of 12/20/16 omitted from the bank statement 8. Check of Rome Products Co. charged back on 12/22/16 for lack of countersignature. 11,640.00 2,892.41 Redeposited 1/5/17. No entry was made for the chargeback or the redeposit. 9. Error on bank statement in entering deposit of 12/18/16: 873.74 Correct amount Enlered in statement $3,182.40 3,181.40 1.00 2,690.00 10. Check No. 3917 of Trait Manufacturing Co. charged in error to company's account 11. Proceeds of note of J. Somers & Co. col d by bank 12/11/16 not entered on books: Principal $2,000.00 40.00 Interes! less collection charge 5.00 2,035.00 5,000.00 12. Erroneous debit memo of 12/22/16 to charge company's account with settlement of bank loan, which was paid by check No. 8714 on same date 13. Error on bank statement in entering deposit of 12/4/16 Entered as Corredt amount $4,817.10 4,807.10 10.00 1,819.20 14. Deposit of Trait Manufacturing Co. of 12/8/16 credited in error to the company