CP7 On December 1, 2015, Fullerton Company had the account balances shown on page 379. Continuing Cookie CH Credit Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment Debit $18,200 2,200 7,500 16,000 1,600 28,000 $73,500 Accumulated Depreciation- Equipment Accounts Payable Common Stock Retained Earnings $ 3,000 6,100 50,000 14.400 $73,500 During December, the company completed the following transactions Dec. 7 Received $3,600 cash from customers in payment of account (no discount allowed) 12 Purchased merchandise on account from Vance Co. $12,000, terms 1/10, 1/30 17 Sold merchandise on account $16,000, terms 2/10, n/30. The cost of the merchandise sold was $10,000. 19 Paid salaries $2,200. 22 Paid Vance Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17 31 Received $2,700 cash from customers in payment of account (no discount allowed) Adjustment data: 1. Depreciation $200 per month. 2. Insurance expired $400. Instructions (a) Journalize the December transactions. (Assume a perpetual inventory system.) (b) Enter the December 1 balances in the ledger T-accounts and post the December trans- actions. Use Cost of Goods Sold, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Sales Revenue, and Sales Discounts. (c) The statement from Jackson County Bank on December 31 showed a balance of $26,130. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank collected a note receivable of $2,200 for Fullerton Company on December 15. 2. The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January. 3. Checks outstanding on December 31 totaled $1,210. 4. On December 31, the bank statement showed an NSF charge of $680 for a check received by the company from L. Bryan, a customer, on account. Prepare a bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is $26,100. This can be proven by finding the bal ance in the Cash account from parts (a) and (b).) (d) Journalize the adjusting entries resulting from the bank reconciliation and adjustment data (e) Post the adjusting entries to the ledger T-accounts. (1) Prepare an adjusted trial balance. (8) Prepare an income statement for December and a classified balance sheet at December 31