On December 1, 2022 Blossom Company had the following account balances. Debits Credits Cash $18,100 Accumulated Depreciation-Equipment $3,270 Notes Receivable 2,120 Accounts Payable 6,030 Accounts Receivable 7,500 Common Stock 48,700 Inventory 15,500 Retained Earnings 18.530 Prepaid Insurance 1,910 Equipment 31,400 $76,530 $76,530 During December, the company completed the following transactions. Dec. 7 Received $3,630 cash from customers in payment of account (no discount allowed). 12 Purchased merchandise on account from Green Co. $12, 100, terms 1/10, n/30. 17 Sold merchandise on account $16,700, terms 2/10, n/30. The cost of the merchandise sold was $10,500. 19 Paid salaries $2,180. 22 Paid Green Co. in full, less discount. 26 Received collections in full, less discounts, from customers billed on December 17. 31 Received $2,740 cash from customers in payment of account (no discount allowed). Ruestion 1 of 1 8.5 / 20 Your answer is correct. The statement from Lyon County Bank on December 31 showed a balance of $26,657. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank collected the $2,120 note receivable for Blossom Company 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 totaled $1,230. 4. On December 31, the bank statement showed a NSF charge of $630 for a check received by the company from M. Lawrence, a customer, on account. Prepare a bank reconciliation as of December 31 base on the available information.(Hint: The cash balance per books is $26,677. This can be proven by finding the balance in the Cash account from parts (a) and (b).) (List items that increase balance as per bank & books first.) BLOSSOM COMPANY BLOSSOM COMPANY Bank Reconciliation December 31, 2022 Cash Balance per Bank Statement 26,657 Add V: Deposits in Transit 2,740 29,397 Less Outstanding Checks 1,230 i Adjusted Cash Balance per Bank $ 28,167 Cash Balance per Books $ 26,677 Add V: Electric funds transfer received 2,120 28,797 Less NSF Check 630 i $ Adjusted Cash Balance per Books 28.167 Your answer is partially correct. Adjustment data: 1. The amount of depreciation is $110. 2. Insurance expired $478. 3. Income tax expense was $320. It was unpaid at December 31. Journalize the adjusting entries resulting from the bank reconciliation and adjustment data. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Dec. 31 Cash 2,120 Notes Receivable 2,120 2,120 (To record electric funds transfer received) 31 (To record NSF check) 31 Accounts Receivable 630 Cash 630 (To record depreciation expense) 31 Depreciation Expense 110 Accumulated Depreciation-Equipment 110 (To record insurance expense) 31 Insurance Expense 368 Prepaid Insurance 368 (To record income tax expense)