Yesuf Plumbing'sCash account in its general ledger reported a balance of $5,782 on December 31, 2021. The firm's bank statement from Royal Bank reported a balance of $5,405 on the same date.

A comparison of the details in the bank statement with the details in the Cash account revealed the following facts.(30 marks)(54 minutes)

1. The bank statement included a debit memo of $40 for bank service charges.
2. Cash sales of $836 on December 18 were deposited in the bank. The journal entry to record the cash sales and the deposit slip to deposit the cash were incorrectly made out for $886. The bank correctly credited Yesuf Plumbing for the correct amount.
3. The November30 deposit of $2,190 was included on the December bank statement. The deposit had been placed in the bank's night deposit vault on November 30.
4. The December 31 deposit of $2,416 was not included on the December bank statement. The deposit had been placed in the bank's night deposit vault on December 31.
5. Cheques #928 for $180 and #1014 for $236 were outstanding on November 30. Of these, #928 cleared the bank in December All of the cheques written in December except for #1127 for $105 and #1195 for $235 had cleared the bank by December 31.
6. On December 18, the company issued cheque #1151 for $685 to P Ramirez, on account. The cheque, which cleared the bank in December, was incorrectly journalized and posted by Yesuf Plumbing for $658.
7. A review of the bank statement revealed that Yesuf Plumbing received $2,200 of electronic payments from customers on account in December. The bank had also credited the company's account with $80 of interest revenue on December 31. The bank charged a $20 collection fee. Yesuf Plumbing had no previous notice of these amounts.
8. On May 31, the bank statement showed an NSF charge of $680 for a cheque issued by Jerico Daniel a customer, to Yesuf Plumbing on account.

Instructions

a.Prepare the bank reconciliation at December 31 2021

b.Prepare the necessary adjusting entries at December 31,2021