A. Why do businesses need to prepare bank reconciliation statement and give six examples of the common activities that necessitate a bank reconciliation statement? B. On December 1, 2014, Fullerton Company had the following account balances.

Debit Credit

Cash 18,200

Notes Receivable 2,200

Accounts Receivable 7, 500

Inventory 16, 000

Prepaid Insurance 1, 600

Equipment 28, 000

Accumulated Depreciation -Equip 3, 000

Accounts Payables 6, 100

Owners Capital 64, 400

During December, the company completed the following transactions.

December.

7 Received K3,600 cash from customers in payment of account (no discount allowed).

12 Purchased merchandise on account from Vance Co. K12,000, terms 1/10, n/30.

17 Sold merchandise on account K16,000, terms 2/10, n/30. The cost of the merchandise sold was K10,000.

19 Paid salaries K2,200.

22 Paid Vance Co. in full, less discount.

26 Received collections in full, less discounts, from customers billed on December 17.

31 Received K2,700 cash from customers in payment of account (no discount allowed).

Adjustment data:

Depreciation K200 per month.

Insurance expired K400.

Requirements

Journalize the December transactions.

Enter the December 1 balances in the ledger T-accounts and post the December transactions.

The statement from Jackson County Bank on December 31 showed a balance of K26, 130. A comparison of the bank statement with the Cash account revealed the following facts.

The bank collected a note receivable of K2, 200 for Fullerton Company on December 15.

The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January.

Checks outstanding on December 31 totaled K1,210.

On December 31, the bank statement showed an NSF charge of K680 for a check received by the company from L. Bryan, a customer, on account.

Must prepare the bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is K26, 100.)

Journalize the adjusting entries resulting from the bank reconciliation and adjustment data.

Post the adjusting entries to the ledger T-accounts.

Also prepare the adjusted trial balance.

A. Why do businesses need to prepare a bank reconciliation statement and give six 17 Sold merchandise on account K16,000, terms 2/10. n/30. The cost of the examples of the common activities that necessitate a bank reconciliation statement? merchandise sold was K10,000. B. On December 1, 2014, Fullerton Company had the following account balances. 19 Paid salaries K2,200. Debit Credit 22 Paid Vance Co. in full, less discount. Cash 18,200 26 Notes Receivable 2,200 Received collections in full, less discounts, from customers billed on December 17. Accounts Receivable 7, 500 31 Inventory 16, 000 Received K2,700 cash from customers in payment of account (no discount allowed). Prepaid Insurance 1. 600 Adjustment data: Equipment 28, 000 1. Depreciation K200 per month. Accumulated Depreciation -Equip 3, 000 2. Insurance expired K400. Accounts Payables 6, 100 Requirements Owners Capital 64, 400 (i) Journalize the December transactions. (ii) Enter the December 1 balances in the ledger T-accounts and post the December transactions. During December, the company completed the following transactions. (iii) The statement from Jackson County Bank on December 31 showed a balance of K26, 130. A comparison of the bank statement with the Cash account revealed the following facts. December. 1. The bank collected a note receivable of K2, 200 for Fullerton Company on December 15. 2. The December 31 receipts were deposited in a night deposit vault on December 31. These 7 Received K3,600 cash from customers in payment of account (no discount deposits were recorded by the bank in January. allowed). 3. Checks outstanding on December 31 totaled KI,210. 12 Purchased merchandise on account from Vance Co. K12,000, terms 1/10, 4. On December 31, the bank statement showed an NSF charge of K680 for a check received by the company from L. Bryan, a customer, on account. n/30