Melchor Company provided the following information for the month of december

Balance per bank statement	4,000,000
Balance per cash book	2,700,000
Outstanding checks	600,000
Deposit in transit	475,000
Service charge	10,000
Proceeds of bank loan, december 1, discounted for 6 months at 12% not recorded on company books	940,000
Customer's check charged back by bank for absence of counter signature	50,000
Deposit of 100,000 incorrectly recorded by the bank as	10,000
check of Sancho company charged by bank against Melchor company account	150,000

Customer note collected by bank in favor of Melchor company

Face	400,000
Interest	40,000
TOTAL	440,000
Collection Fee	5,000	435,00

Erroneous debit memo of december 28 to charge company's account with settlement of bank loan	200,000
Deposit of Sancho Company credited to Melchor account	300,000

Required: a. Prepare a bank reconciliation using the adjusted balance approach b. Prepare adjusting entries on December 31