PROBLEM 3.7

Problem 3-7 (IAA) Bedlam Company provided the following data for the month of December: November 30 December 31 2,032,000 3,160,000 1,890,000 2,900,000 1,080,000 ? . ? 1,440,000 180,000 592,000 80,000 498,000 Cash in bank account balance Bank statement balance Bank debits Bank credits Book debits Book credits Outstanding checks Deposit in transit Check erroneously charged by bank against entity's account and corrected in subsequent month Bank service charge Note recorded as cash receipt by entity when placed with bank for collection and note is actually collected by bank in subsequent month and credited by bank to entity's account in same month 40,000 250,000 2,000 4,000 200,000 300,000 Required: a. Prepare a four-column reconciliation showing adjusted balances. b. Prepare one adjusting entry only on December 31