Selected transactions completed by Gampfer Company during its first fiscal year ending December 31 were as follows:Jan. 2. Issued a check to establish a petty cash fund of $3200.Mar. 14. Replenished the petty cash fund based on the following summary of petty cash receipts: office supplies $1200; miscellaneous selling expense $410; miscellaneous administrative expense $620.Apr. 21. Purchased $22400 of merchandise on account terms 1/10 n/30. The perpetual inventory system is used to account for inventory.May 20. Paid the invoice of April 21 after the discount period had passed.23. Received cash from daily cash sales for $15120. The amount indicated by the cash register was $15152.June 15. Received a 60-day 10% note for $127500 on the Cady account.Aug. 14. Received amount owed on June 15 note plus interest at the maturity date.18. Received $5440 on the Yoder account and wrote off the remainder owed on a $6400 accounts receivable balance.Sept. 9. Reinstated the Yoder account written off on August 18 and received $960 cash in full payment.15. Purchased land by issuing a $480000 90-day note to Ace Development Co. which discounted it at 8%.Oct. 17. Sold office equipment in exchange for $96000 cash plus receipt of a $64000 90-day 6% note. The equipment had a cost of $224000 and accumulated depreciation of $44800 as of October 17.Nov. 30. Journalized the monthly payroll for November based on the following data: 30. Journalized the employer s payroll taxes on the payroll.Dec. 14. Journalized the payment of the September 15 note at maturity. 31. The pension cost for the year was $136000 of which $99840 was paid to the pension plan trustee.Instructions1. Journalize the selected transactions.2. Based on the following data prepare a bank reconciliation for December of the current year:a. Balance according to the bank statement at December 31 $202240.b. Balance according to the ledger at December 31 $175440.c. Checks outstanding at December 31 $48960.d. Deposit in transit not recorded by bank $21120.e. Bank debit memo for service charges $540.f. A check for $11520 in payment of an invoice was incorrectly recorded in the accounts as $11020.3. Based on the bank reconciliation prepared in (2) journalize the entry or entries to be made by Gampfer Company.4. Based on the following selected data journalize the adjusting entries as of December 31 of the current year:a. Estimated uncollectible accounts at December 31 $11520 based on an aging of accounts receivable. The balance of Allowance for Doubtful Accounts at December 31 was $1200 (debit).b. The physical inventory on December 31 indicated an inventory shrinkage of $2360.c. Prepaid insurance expired during the year $16300.d. Office supplies used during the year $2800.e. Depreciation is computed as follows:f. A patent costing $36000 when acquired on January 2 has a remaining legal life of eight years and is expected to have value for six years.g. The cost of mineral rights was $390000. Of the estimated deposit of 650000 tons of ore 38400 tons were mined and sold during the year.h. Vacation pay expense for December $7500.i. A product warranty was granted beginning December 1 and covering a one-year period. The estimated cost is 3% of sales which totaled $1350000 in December.j. Interest was accrued on the note receivable received on October 17.5. Based on the following information and the post-closing trial balance shown below prepare a balance sheet in report form at December 31 of the current year.The merchandise inventory is stated at cost by the LIFO method.The product warranty payable is a current liability.Vacation pay payable:Current liability . $5100Long-term liability .. 2400The unfunded pension liability is a long-term liability.Notes payable:Current liability . $ 50000Long-term liability .450000