The bank portion of the bank reconciliation for Maloney Company at October 31, 2021, was as follows:

The adjusted cash balance per bank agreed with the cash balance per books at October 31. The November bank statement showed the following:

Additional information from the bank statement:

1. The EFT of $2,479 is an electronic transfer from a customer in payment of its account. The amount includes $49 of interest that Maloney Company had not previously accrued.

2. The NSF for $260 is a $245 cheque from a customer, Pendray Holdings, in payment of its account, plus a $15 processing fee. The company?s policy is to pass on all NSF service charges to the customer.

3. The LN is a payment of a note payable with the bank and consists of $250 interest and $2,000 principal.

4. At October 31, the cash balance per books was $10,160. The bank did not make any errors. The cash records per books for November follow. Two errors were made by Maloney Company.

Instructions

a. Prepare a bank reconciliation at November 30.

b. Prepare the necessary adjusting entries at November 30. The correction of any errors in the recording of cheques should be made to Accounts Payable except for item 3, which should be made to Notes Payable. The correction of any errors in the recording of cash receipts should be made to Accounts?

When there is an error, how does a company determine if it was a bank error or a company error? How would you know if the bank has made an error in your account?

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MALONEY COMPANY Bank Reconciliation October 31, 2021 Cash balance per bank Add: Deposits in transit $11,545 1,530 13,075 Less: Outstanding cheques #2451 $1,260 #2470 920 #2471 845 #2472 504 #2474 1,050 4,579 Adjusted cash balance per bank $ 8,496 MALONEY COMPANY Bank Statement November 30, 2021 Cheques and Other Debits Date Number Amount Deposits Amount Oct. 31 $11,545 Nov. 3 2470 $ 920 $1,530 12,155 4 2471 845 11,310 2475 1,641 1,212 10,881 6. 2474 1,050 9,831 2476 2,830 990 7,991 7,391 10 2477 600 13 2,575 9,966 1,750 1,330 14 2479 8,216 18 2480 1,473 8,359 11,325 21 2,966 25 NSF 260 2,567 13,632 26 2481 695 12,937 27 1,650 14,587 006 575 28 2486 EFT 2,479 16,166 28 2483 1,186 16,777 14,527 30 LN 2,250