Evergreen Company sells lawn and garden products to wholesalers. The company's fiscal year-end is December 31. During 2021, the following transactions related to receivables occurred: Feb. 28 Sold merchandise to Lennox, Inc., for $12,000 and accepted a 10%, 7-month note. 10% is an appropriate rate for this type of note. Mar. 31 Sold merchandise to Maddox Co. that had a fair value of $9,000, and accepted a noninterest-bearing note for which $10,000 payment is due on March 31, 2022. Apr. 3 Sold merchandise to Carr Co. for $7,000 with terms 3/10, n/30. Evergreen uses the gross method to account for cash discounts. 11 Collected the entire amount due from Carr Co. 17 A customer returned merchandise costing $5,200. Evergreen reduced the customer's receivable balance by $7,000, the sales price of the merchandise. Sales returns are recorded by the company as they occur. 30 Transferred receivables of $70,000 to a factor without recourse. The factor charged Evergreen a 2% finance charge on the receivables transferred. The sale criteria are met. June 30 Discounted the Lennox, Inc., note at the bank. The bank's discount rate is 12%. The note was discounted without recourse. Sep. 30 Lennox, Inc., paid the note amount plus interest to the bank. Required: 1. Prepare the necessary journal entries for Evergreen for each of the above dates. For transactions involving the sale of merchandise, ignore the entry for the cost of goods sold. 2. Prepare any necessary adjusting entries at December 31, 2021. Adjusting entries are only recorded at year-end. 3. Prepare a schedule showing the effect of the journal entries on 2021 income before taxes. The bank statement for the checking account of Management Systems Inc. (MSI) showed a December 31, 2021, balance of $16,035.62. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks were $1,462.35. b. The December 31, 2021, cash receipts of $645 were not deposited in the bank until January 2, 2022. c. One check written in payment of rent for $260 was correctly recorded by the bank but was recorded by MSI as a $272 disbursement. d. In accordance with prior authorization, the bank withdrew $590 directly from the checking account as payment on a note payable. The interest portion of that payment was $420. MSI has made no entry to record the automatic payment. e. Bank service charges of $28 were listed on the bank statement. f. A deposit of $945 was recorded by the bank on December 13, but it did not belong to MSI. The deposit should have been made to the checking account of MIS, Inc. g. The bank statement included a charge of $95 for an NSF check. The check was returned with the bank statement and the company will seek payment from the customer. h. MSI maintains a $230 petty cash fund that was appropriately reimbursed at the end of December. i. According to instructions from MSI on December 30, the bank withdrew $17,000 from the account and purchased U.S. Treasury bills for MSI. MSI recorded the transaction in its books on December 31 when it received notice from the bank. Half of the Treasury bills mature in two months and the other half in six months. Required: 1. Prepare a bank reconciliation for the MSI checking account at December 31, 2021. You will have to compute the balance per books. 2. Prepare any necessary adjusting journal entries indicated. 3. What amount would MSI report as cash and cash equivalents in the current asset section of the December 31, 2021, balance sheet