The cash balance per books for Wellmeyer Company on November 30, 2010, is $10,740.93. The following checks and receipts were recorded for the month of December 2010:

Checks Receipts

No. Amount No. Amount Amount Date

17 $372.96 22 $ 578.84 $ 843.86 12/5

18 780.62 23 1,687.50 941.54 12/21

19 157.00 24 921.30 808.58 12/27

20 587.50 25 246.03 967.00 12/31

21 234.15

In addition, the bank statement for the month of December is presented below:

Balance Deposits and Credits Checks and Debits Balance

Last Statement No. Total Amount No. Total Amount This Statement

$5,404.84 5 $9,178.36 10 $3,632.19 $10,951.01

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Checks and other debits Deposits Date Balance

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No. Amount No. Amount No. Amount

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14 148.29 17 372.96 22 578.84 5,484.38 12/1 $9,875.13

18 708.62 24 921.30 843.86 12/8 $9,219.03

19 157.00 25 246.03 941.54 12/23 $9,541.58

21 234.15 15.00 SC 808.58 12/29 $10,101.01

250.00 NSF 1,100.00 CM 12/31 $10,951.01

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Symbols: NSF (Not sufficient funds) SC (Service charge) CM (Credit Memo)

Check No. 18 was correctly written for $708.62 for a payment on account. The NSF check was from S. Gill, a customer, in settlement of an account receivable. An entry has not been made for the NSF check. The credit memo is for the collection of a note receivable including interest of $60 that has not been accrued. The bank service charge is $15.00.

Instructions

(a) Prepare a bank reconciliation at December 31.

(b) Prepare the adjusting journal entries required by the bank reconciliation