18. Refer to Google's financial statements in Appendix A. The company's net income for the year ended 12/31/18 is $30.736,000 (pg. A-10). The company's net increase in cash and cash equivalents for the year ended 12/31/18 is $5,986,000 (Pg. A-12). Describe one reason why net income is not the same as the increase in cash and cash equivalents. 19. A company's bank reconciliation as of December 31 is shown below. Bank balance + Deposit in transit - Outstanding checks Adjusted bank balance $ 15,800 5,200 -4,600 $ 16,400 Book balance Bank service fees NSF returned Adjusted book balance $ 17,025 -25 -600 $ 16,400 One of the adjusting journal entries that the controller of the company must record as a result of the bank reconciliation includes: An increase to Cash of $625 An increase to Cash of $5,200 A decrease to Cash of $4,600 d. A decrease to Cash of $600 An increase to cash of $25 b. c. e. 20. ABC Company uses the perpetual inventory system and all purchases and sales are on credit. The company uses the allowance method to account for bad debt. The following transactions occurred during January of 2021: 1/4/21 Sold $800 of merchandise that cost $525 to XYZ Co, terms n'15. 1/5/21 Sold $6,900 of merchandise, that had a cost of 4,100 to customers who used a credit card. The credit card company charges ABC a 3% processing fee. 1/13/21 Wrote off an accounts receivable from a sale made in the prior year in the amount of $650. 1/18/21 Received a check in full payment for the sale made on 1/4/21 to XYZ Co. Using the attached T-account template (or prepare an "equation" presentation): Prepare the entries to recognize the transactions listed above