Journals, Bank Reconciliation & Adjusting Entries Wellfield Corporations Accountant is on maternity leave for the period of 3-months (MayJuly). The office clerk was performing her duties however given his lack of Accounting knowledge the Director contacted you to bring their accounting records up to par. You discovered the following: The following transactions were not recorded: May 2 Took out $35,000 notes payable from the bank. May 5 Purchased $2,800 worth of supplies on credit. This will last for several months. May 7 Collected $ 9,900 from clients for services to be performed. May 8 Purchased equipment for $21,000, paying $11,000 cash and the balance on the account. May 15 Billed clients for services provided, $14,000. May 17 Paid $700 in cash for the current months rent. June 2 Paid $1,200 for supplies purchased in May. 5. June 15 Paid $4,800 cash on the balance owed for equipment. July 25 Paid $2,200 cash for utilities. Jul 31 Declared and paid a 1,000 cash dividend. An analysis of the accounts shows that no adjusting entries were prepared for the maternity leave period: The equipment depreciates $320 per month. 2. One-third of the $9,900 Unearned Service Revenue received in May, was earned during the period. 3. Interest totaling $1,500 is accrued for the period. 4. Of the Supplies purchased on May 5, $840 remains on hand at the end of July. 5. Insurance expires at the rate of $400 per month. 6. Salaries of $3,600 were unpaid. For the month of July, the cash records reflect a balance of $14,930 while its bank statement balance was $14,150. A more detailed review reveals several reconciling items: i. Deposits in transit amounted to $9,190. ii. Included in the bank statement as of July 31, 2021, were the following memoranda: Credit Memorandum: a note for $1,690 and interest of $110 had been collected by the bank and the bank charged a collection fee of $40. Debit Memorandum: $90 for service charges for the month of July 2021. iii. Outstanding cheques: Cheque #224 for $4,340 Cheque #232 for $1,254 Cheque #237 for $2,453 iv. Check no. 242 was issued to pay for purchases (Accounts Payables) in the amount of $791 but had been entered in the cash journal as $719 in error. v. Included in the company deposits for July 2021 was a cheque for $1,235, but the bank has returned this cheque as NSF. REQUIRED: a. Journalize the unrecorded transactions. 10 Marks b. Journalize these adjusting entries for the period 8 Marks c. Explain to the office assistance the reasons for adjusting entries and the major types of adjusting entries. 4 Marks d. Prepare the Bank Reconciliation Statement. 8 Marks