Selected transactions completed by Kornett Company during its first fiscal year ended December 31, 20Y8, were as follows: Jan. 3 Issued a check to establish a petty cash fund of $4,500. Feb. 26 Replenished the petty cash fund, based on the following summary of petty cash receipts: office supplies, $1,680; miscellaneous selling expense, $570; miscellaneous administrative expense, $880. Apr. 14 Purchased $31,300 of merchandise on account, terms, n/30. The perpetual inventory system is used to account for inventory. May 13 Paid the invoice of April 14. 17 Received cash from daily cash sales for $21,200. The amount indicated by the cash register was $21,240. Jun. 2 Received a 60-day, 8% note for $180,000 on the Ryanair account. Aug. 1 Received amount owed on June 2 note, plus interest at the maturity date. Assume a 360-day year. Aug. 24 Received $7,600 on the Finley account and wrote off the remainder owed on a $9,000 accounts receivable balance. (The allowance method is used in accounting for uncollectible receivables.) Sep. 15 Reinstated the Finley account written off on August 24 and received $1,400 cash in full payment. (Record as two entries.) Record the following on journal page 22. Sep. 15 Purchased land by issuing a $670,000, 90-day note to Zahorik Co., which discounted it at 9%. Assume a 360-day year. Oct. 17 Sold office equipment in exchange for $135,000 cash plus receipt of a $100,000, 90-day, 9% note. The equipment had a cost of $320,000 and accumulated depreciation of $64,000 as of October 17. Nov. 30 Journalized the monthly payroll for November, based on the following data: Salaries: Deductions:Sales salaries $135,000 Income tax withheld $39,266Office salaries 77,250 Social security tax withheld 12,735 $212,250 Medicare tax withheld 3,184 Unemployment Tax rates: State unemployment 5.4% Federal unemployment 0.6% Amount subject to unemployment taxes: State unemployment $5,000 Federal unemployment 5,000 Nov. 30 Journalized the employer’s payroll taxes on the payroll. Dec. 14 Journalized the payment of the September 15 note at maturity. Dec. 31 The pension cost for the year was $190,400, of which $139,700 was paid to the pension plan trustee. Required: 1. Journalize the selected transactions, starting on page 21 of the journal.2. Prepare a bank reconciliation for December 20Y8. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Enter all amounts as positive numbers. Kornett Company Bank Reconciliation December 31, 20Y8:a) Cash balance according to bank statement $283,000.00 b) Add: Deposit in transit, not recorded by bank 29,500.00 c) $312,500.00 d) Deduct: Outstanding checks 68,540.00 e) Adjusted balance $243,960.00f) Cash balance according to the company’s records $245,410.00 g) Deduct: Bank service charges $750.00 h) Error in recording check 700.00 i) Adjusted balance $243,960.00