In connection with the audit of cash of company A, as of December 31st, the following information has been obtained:

a. Balance per bank

November 30th $185,700

December 31st $193,674

b. Balance per books

November 30th $154,826

December 31st $167,598

c. Receipts for the month of December

Per bank $1,350,450

Per books $2,335,445

d. Outstanding checks:

November 30th $63,524

December 31st $75,046

e. Dishonored checks are recorded as a reduction of cash receipts. Dishonored checks which are later redeposited are then recorded as a regular cash receipt. Dishonored checks returned by the bank and recorded by the company amounted to $6,250 during the month of December according to the books, $5,000 were redeposited. Dishonored checks reported on the bank statement but not in the books until the following months amounted to $250 at November 30th and $2,300 at December 31st.

f. On December 31st, a $2,323 check written by another company was charged to our company account by the bank in error.

g. Proceeds of a note of a customer collected by the bank on December 10th, on behalf of our company were not entered in the books:

Principal 2,000, interest $20, less bank fee of $5 =$ 2,015

h. The company has hypothecated (assigned) its accounts receivable with the bank under an agreement whereby the bank lends the company 80 percent on the hypothecated accounts receivable. Accounting for and collection of the accounts are performed by our company, and adjustments of the loan are made from daily sales reports and daily deposits. The bank credits the company account and increases the amount of the loan for 80 percent of the reported sales. The loan agreement states specifically that the sales report must be accepted by the bank before the company bank account is credited. Sales reports are forwarded by the company to the bank on the first day following date of sales.

The bank allocated each deposit 80% to the payment of the loan and 20% of the company account.

Thus, only 80% of each days sales and 20% of each collection are entered on the bank statement.

Company accountant records the hypothecation of new accounts receivable (80%) as a debit cash and a credit to the bank loan as the date of sales. One hundred percent of the collection on accounts receivable is recorded as a cash receipt; 80% of the collections is recorded in the cash disbursements book as a payment on the loan.

In connection with the hypothecation, the following facts were determined: Included in the deposited in transit in cash from the hypothecation of accounts receivable. Sales were $40,500 on November 30th, and $42,250 on December 31st. The balance of the deposit in transit at December 31st was made up from collections of $32,110 which were entered on the books in the manner indicated above.

Collections on accounts receivable deposited in December, other than deposits in transit, totaled $1,200,000

Interest on the bank loan for the month of December charged by the bank but not recorded on the books amounted to $6,140

Prepare a four-column reconciliation from bank and book to corrected balance for December.