The bank portion of the bank reconciliation for Horsman Company at October 31, 2012, is shown here and on the next page.
?
The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following checks and deposits.<>
>?
The cash records per books for November showed the following.
?
The bank statement contained two bank memoranda:
1. A credit of $2,242 for the collection of a $2,100 note for Horsman Company plus interest of $157 and less a collection fee of $15. Horsman Company has not accruedany interest on the note.
2. A debit for the printing of additional company checks $85. At November 30, the cash balance per books was $11,073.80 and the cash balance per bank statement was $17,712.50. The bank did not make any errors, but Horsman Company made two errors.
Instructions
(a) Using the four steps in the reconciliation procedure described on pages 354–355, prepare a bank reconciliation at November 30, 2012.
(b) Prepare the adjusting entries based on the reconciliation. (Note: 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 should be made to AccountsReceivable.)