Introductory Financial Accounting Individual Assignment 3 Question 1 Marvel Ltd.'s accountant is preparing the bank reconciliation at 31 December 2020. The December bank statement showed the following checks and deposits. Checks Date Number 12-4 3475 12-8 3476 12-10 3477 12-15 3479 12-27 3480 12-30 3482 12-29 3483 12-31 5800* 12-31 3485 *See note 3 below Bank Statement Deposits Amount Date Amount $1,640.70 12-1 $2,530.20 1,300.00 12-4 1,211.60 2,130.00 12-8 2,365.10 3,080.00 12-16 836.15 685.00 12-21 2,954.00 475.50 12-26 2,567.30 1,140.00 12-29 2,836.00 600.00 12-30 1,025.00 540.80 The cash records per books for August showed the followings. Cash Payments Journal Date Number Amount Date Number 12-1 3475 $1,640.70 12-20 3482 12-2 3476 1,300.00 12-22 3483 12-2 3477 2,130.00 12-24 3485 12-8 3479 3,080.00 12-30 3486 12-10 3480 658.00 Amount 475.50 1,140.00 540.80 256.25 Cash Receipts Journal Date Amount 12-1 $2,530.20 12-3 1,211.60 12-7 2,365.10 12-15 886.15 12-20 2,954.00 12-25 2,567.30 12-28 2,836.00 12-30 1,025.00 12-31 1,916.15 The following information is also provided: 1. Marvel Ltd. had a cash balance per books of $16,781.50. The bank statement on that date showed a balance of $16,824.60. 2. A $3,000 note receivable was collected by the bank for Marvel on December 31 plus $80 interest. No interest has been accrued on the note. 3. Included with the cancelled checks was a check with check number 5800 issued by Bridges plc to Jon Newton for $600 that was incorrectly charged to Marvel by the bank. 4. On August 31, the bank statement showed an NSF check of $640 issued by Sandy Grifton, a customer. 5. A check printing charge of $60 was charged to the bank account. 6. Besides the error made by the bank in note 3, there are two more discrepancies between the bank statement and the book records. (Hint: The correction of any errors pertaining to recording checks should be made to Accounts Payable. The correction of any errors relating to recording cash receipts relates to receipts from cash sales.) Instructions (a) Prepare a bank reconciliation at December 31. (b) Prepare the adjusting entries based on the reconciliation