El Gato Painting Company maintains a checking account at American Bank. Bank statements are prepared at the end of each month. The November 30, 2021, reconciliation of the bank balance is as follows: Balance per bank, November 30 $ 3,401 Add: Deposits outstanding 1,370 Less: Checks outstanding #363 $ 140 #365 218 #380 73 #381 103 #382 260 (794 ) Adjusted balance per bank, November 30 $ 3,977 The companys general ledger checking account showed the following for December: Balance, December 1 $ 3,977 Receipts 44,350 Disbursements (43,553 ) Balance, December 31 $ 4,774 The December bank statement contained the following information: Balance, December 1 $ 3,401 Deposits 44,700 Checks processed (43,618 ) Service charges (39 ) NSF checks (610 ) Balance, December 31 $ 3,834 The checks that were processed by the bank in December include all of the outstanding checks at the end of November except for check #365. In addition, there are some December checks that had not been processed by the bank by the end of the month. Also, you discover that check #411 for $850 was correctly recorded by the bank but was incorrectly recorded on the books as a $580 disbursement for advertising expense. Included in the banks deposits is a $3,000 deposit incorrectly credited to the companys account. The deposit should have been posted to the credit of the Los Gatos Company. The NSF checks have not been redeposited and the company will seek payment from the customers involved. Required: 1. Prepare a bank reconciliation for the El Gato checking account at December 31, 2021. 2. Prepare any necessary adjusting journal entries indicated.