On December 1, 2019, Splish Brothers Inc. had the following account balances. During December, the company completed the following transactions.

Dec. 7		Received $ 3,600 cash from customers in payment of account (no discount allowed).
12		Purchased merchandise on account from Vance Co. $ 12,100, terms 1/10, n/30.
17		Sold merchandise on account $ 16,500, terms 2/10, n/30. The cost of the merchandise sold was $ 9,700.
19		Paid salaries $ 2,300.
22		Paid Vance Co. in full, less discount.
26		Received collections in full, less discounts, from customers billed on December 17.
31		Received $ 2,600 cash from customers in payment of account (no discount allowed).

Adjustment data:

1.		Depreciation $ 200 per month.
2.		Insurance expired $ 400.

Enter the December 1 balances in the ledger T-accounts and post the December transactions. The statement from Jackson County Bank on December 31 showed a balance of $ 25,621. A comparison of the bank statement with the Cash account revealed the following facts.

1.		The bank collected a note receivable of $ 2,400 for Splish Brothers Inc. on December 15 through electronic funds transfer.
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 totalled $ 1,100.
4.		On December 31, the bank statement showed an NSF charge of $ 670 for a check received by the company from L. Bryan, a customer, on account.

Prepare a bank reconciliation as of December 31 based on the available information. (Hint: The cash balance per books is $ 25,391. This can be proven by finding the balance in the Cash account from parts (a) and (b).) Journalize the adjusting entries resulting from the bank reconciliation and adjustment data. Post the adjusting entries to the ledger T-accounts. Prepare an adjusted trial balance. Prepare an income statement for December. Prepare a classified balance sheet at December 31

Debit Credit Cash Notes Receivable Accounts Receivable Inventory Prepaid Insurance Equipment $3,100 6,000 53,500 10,000 $72,600 $17,300 Accumulated Depreciation-Equipment 2,400 Accounts Payable 7,900 Common Stock 15,600 Retained Earnings 1,600 27,800 $72,600