he Tarragon Trading Company's bank statement for the month of November showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5,659 at 30 November. Other information is as follows:

(1) Cash receipts for 30 November recorded on the company's books were $5,200 but this amount does not appear on the bank statement.

(2) The bank statement shows a debit memorandum for $40 for cheque printing charges.

(3) The total amount of cheques still outstanding at 30 November amounted to $5,800.

(4) Cheque No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Cheque No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490.

(5) The bank returned a dishonoured cheque from a customer for $560.

(6) The bank included a credit memorandum for $1,260, which represents collection of a customer's note by the bank for the company; principal amount of the note was $1,200, bank charge was $20 and interest was $80. Interest has not been accrued.

Required

(a) Prepare a bank reconciliation for the Tarragon Trading Company at 30 November. (4 marks)

(b) Prepare any adjusting entries necessary as a result of the bank reconciliation. (5 marks)