In auditing the Train Company, you obtain directly from the bank Train€™s bank statement, canceled checks, and other memoranda which relate to the company€™s bank account for December 2007. In reconciling the bank balance on December 31, 2007 with that shown on the company€™s books, you observe the following facts:

Required
1. Prepare a reconciliation of the Train Company€™s bank account.
2. Prepare journal entries to adjust the Train Company€™s books to reflect the correct bank balance on December 31,2007.

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. Balance per bank statement 2. Balance per books 3. Outstanding checks, 12/31/o7 4. Receipts of 12/31/07 deposited on 1/1/08 5. Service charge for December 6. Proceeds of bank loan, 12/15/07 omitted from company records 91,174.63 59,088.46 33,378.82 5,317.20 (discounted for 3 months at 12% per year) 7. Deposit of 12/20/07 omitted from the bank statement 8. Check of Rome Products Co. charged back on 12/22/07 for lack of 11,640.00 2,892.41 countersignature. Redeposited 1/5/08. No entry was made for the chargeback or the redeposit. 873.74 9. Error on bank statement in entering deposit of 12/18/07 $3,182.40 3,181.40 Correct amount Entered in statement company s account on books Interest 1.00 0. Check No. 3917 of Trait Manufacturing Co. charged in error to 2,690.00 11. Proceeds of note ofJ. Somers & Co. collected by bank 12/11/07 not entered $2,000.00 40.00 $2,040.00 5.00 Less: collection charge settlement of bank loan, which was paid by check No. 8714 on same date Entered as 2,035.00 12. Erroneous debit memo of 12/22/07 to charge company's account with 5,000.00 13. Error on bank statement in entering deposit of 12/4/07 $4,817.10 4,807.10 Correct amount 14. Deposit of Trait Manufacturing Co. of 12/8/07 credited in error to the company 10.00 1,819.20