Adjustments at year$-$end that the former accountant has not recorded in the accounting records:

Prepare a bank reconciliation and record the adjusting entries from the bank reconciliation $($date

all the journal entries as December $31).$

The Bank statement shows a balance of $$115,830.$

The bank statement has two transactions that are not recorded in the general ledger: bank

charges of $$20$ and EPCOR direct withdrawal of $$150$ for the December electricity charges.

Regular transaction #$5$ above is not on the bank statement because the supplier has not

cashed the cheque.

Regular transaction #$6$ above is not on the bank statement because the deposit was made in

the night depository after the bank was closed.

There is $$4,000$ of wages owed to employees at year$-$end.

A count of the supplies at year$-$end revealed that $$2,000$ of supplies are on hand. The inventory

balance in the general ledger does not require an adjustment because it equals the inventory

that is available for sale.

The building asset on the trial balance is being depreciated over $20$ years with an estimated

residual value of $$10,000.$ Cozy Fireplaces Inc. purchased the building on January $3,2020.$

The bank loan on the trial balance was taken out on April $1,2020.$ The first interest payment is

due on April $1,2021.$ The annual interest rate is $5\%.$ Bank loan is due April $1,2025$

Aging of Accounts receivable is $1-30$ days $$15,000,31$ to $45$ days $$12,000,$ and over $45$ days is

$$2,000.$ Management estimates that $30\%$ of the accounts receivables over $45$ days will not be

collectible.