On December 1, 2014, Westmoreland Company had the following account balances.

		Debits				Credits
Cash		$19,910
Notes Receivable		2,160		Accumulated DepreciationEquipment		$3,420
Accounts Receivable		7,550		Accounts Payable		6,090
Inventory		16,490		Common Stock		47,900
Prepaid Insurance		1,700		Retained Earnings		17,500
Equipment		27,100
		$74,910				$74,910

During December, the company completed the following transactions.

Dec.

7

Received $3,760 cash from customers in payment of account (no discount allowed).

12

Purchased merchandise on account from Alice Co. $12,800, terms 1/10, n/30.

17

Sold merchandise on account $16,800, terms 2/10, n/30. The cost of the merchandise sold was $10,480.

19

Paid salaries $1,730.

22

Paid Alice Co. in full, less discount.

26

Received collections in full, less discounts, from customers billed on December 17.

31 Receoved $2695 cash from customers in payment of account(no discount allowed)

The statement from Dodge County Bank on December 31 showed a balance of $28,479. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank collected a note receivable of $2,160 for Westmoreland Company on December 15.
2.		The December 31 receipts were deposited in a night deposit vault on December 31. These deposits were recorded by the bank in January.
3.		Checks outstanding on December 31 totaled $1,257.
4.		On December 31, the bank statement showed a NSF charge of $670 for a check received by the company from K. Quinn, a customer, on account.

Prepare a bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is $28,427. This can be proven by finding the balance in the Cash account from parts (a) and (b).)

Adjustment data:

1.		Depreciation $140 per month.
2.		Insurance expired $425. Post the adjusting entries to the ledger T-accounts Accounts are cash notes recievable accounts receivable inventory prepaid insurance equipment accumlated depreciation-equipment accounts payable common stock retained earnings sales revenue sales discount cost of goods depreciation expense salaries and wages expense insurance expense