The general ledger of Michelle Company Ltd. showed a cash balance of $25,160 on 31 December 20X2, while the bank showed a balance of $59,400. The following facts were available:

1. The bank collected $11,560 as a direct deposit for one of Michelles customer as a payment on account. A $15 fee was charged by the bank for administration. Michelle has yet to record either of these amounts.
2. Michelle paid a utilities bill of $390 through direct transfer from its bank account but has not yet recorded the payment.
3. There was an outstanding deposit of $16,800 at the end of December.
4. The bank had charged a cheque of $2,600, written by Mitchell Corp., to Michelles bank account. The bank has been contacted about the error, and will reverse the cheque in January.
5. A deposit of $1,300 from a customer on account was recorded by Michelle for $3,100. The bank noticed the error and deposited the correct amount of money, but the deposit is incorrectly recorded on Michelles books.
6. Michelles bank account shows a deposit of $22,000 in December, which is an increase in Michelles bank loan. The amount has not been recorded by Michelle.
7. At the end of November, outstanding cheques were $8,185. This month, cheques were issued for $199,000, and cheques of $184,900 cleared the bank account.

Required: 1. Prepare a bank reconciliation, in good form, at the end of December 20X2.

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Item 1

The general ledger of Michelle Company Ltd. showed a cash balance of $25,160 on 31 December 20X2, while the bank showed a balance of $59,400. The following facts were available:

1. The bank collected $11,560 as a direct deposit for one of Michelles customer as a payment on account. A $15 fee was charged by the bank for administration. Michelle has yet to record either of these amounts.
2. Michelle paid a utilities bill of $390 through direct transfer from its bank account but has not yet recorded the payment.
3. There was an outstanding deposit of $16,800 at the end of December.
4. The bank had charged a cheque of $2,600, written by Mitchell Corp., to Michelles bank account. The bank has been contacted about the error, and will reverse the cheque in January.
5. A deposit of $1,300 from a customer on account was recorded by Michelle for $3,100. The bank noticed the error and deposited the correct amount of money, but the deposit is incorrectly recorded on Michelles books.
6. Michelles bank account shows a deposit of $22,000 in December, which is an increase in Michelles bank loan. The amount has not been recorded by Michelle.
7. At the end of November, outstanding cheques were $8,185. This month, cheques were issued for $199,000, and cheques of $184,900 cleared the bank account.

Required: 1. Prepare a bank reconciliation, in good form, at the end of December 20X2. 2. Prepare any adjusting journal entries required as a result of the reconciliation.