A. Prepare the bank reconciliation at December 31.

B. Prepare the necessary journal entries at December 31.

On December 31,2024 . Lally Company had a cash balance per books of 58,981 . The bank statement on that date showed a balance of \$10,155. A comparison of the statement with the Cash account revealed the followine: 1. Thestatement induded debit memos of $70 for the printing of additional company cheques and $30 for bark service charges. 2 Cash sales of $417 on December 12 were deposited in the bank. The journal entry to record the cash reccipt and the deposit slip were incorrectly made out and recorded by Lally as $741. The bank detected the error on the deposit slip and credited Lally Company for the correct amount. 3 The November 30 deposit of $995 was included on the December bank statement. The deposit had beon placed in the bank's right deposit vault on Novernter 30. 4. The December 31 deposit of $960 was not induded on the December bank statement. The deposit had been placed in the bank's night deposit voult on December 31 5. Cheques 1006 for $415 and 11072 for $975 were outstandine on Nowember 30 Of these. 1072 cleared the barkin December. All the cheques writteh in Decernber except for 41278 for 5555 , 11284 for 5646 , and 1285 for $315 had deared the bank by December 31 6. On December 18, the compary fasued cheque 11181 for 5457 to Harper 2Co on account The cheque, which cleared the bankin December, was incorrectly journalized and postod by Lali y Compary for 5574. 7. A review of the benk statement revealed that Latly Company receilved electronic payments from customers on account of $1.875 in December. The bank had also credited the account with 525 of interst revenoe on Decerber 31 . Lal y had no previous notice of these amounts. 8 Incuded with the canceled chbques was a cheque issued by Mally Compary for $585 that was incoerectly charged to Lally Compary by the bank 9. On December 31, the bank stalement showed an NSE charpe of \$gos for a cheque issued by W. Foad a customer, to Lally Compary oo accoint. This amount included a 516 service charne by the bark. The comparfys policy lo to pars on all NSF fees to the customer