The bank portion of the bank reconciliation for Rintala Company at November 30, 2014, was as follows.

Cash balance per bank	$14,540.51
Add: Deposits in transit	2,530.20
Less: Outstanding checks	17,070.71
Check Number	Check Amount
3451	2,260.40
3470	720.10
3471	844.50
3472	1,426.80
3474	1,052.39	6,304.19
Adjusted cash balance per bank		10,766.52

The adjusted cash balance per bank agreed with the cash balance per books at November 30. The December bank statement showed the following checks...

Date	Number	Amount
12-1	3451	$2,260.40
12-2	3471	844.50
12-7	3472	1,426.80
12-4	3475	1,640.70
12-8	3476	1,300.00
12-10	3477	2,130.00
12-15	3479	3,080.00
12-27	3480	600.00
12-30	3482	475.50
12-29	3483	1,140.00
12-31	3485	530.80
		=$15,428.70

Deposits...

Date	Amount
12-1	2,530.20
12-4	1,211.60
12-8	2,365.10
12-16	2,672.70
12-21	2,945.00
12-26	2,567.30
12-29	2,836.00
12-30	1,025.00
	=18,152.90

The cash records per books for December showed the following.

Cash Payments Journal

Date	Number	Amount
12-1	3475	$1,640.70
12-2	3476	1,300.00
12-2	3477	2,130.00
12-4	3478	621.30
12-8	3479	3,080.00
12-10	3480	600.00
12-17	3481	807.40
12-20	3482	475.50
12-22	3483	1,140.00
12-23	3484	795.61
12-24	3485	350.80
12-30	3486	1,889.50

=$14,830.81

Cash Receipts Journal

Date	Amount
12-3	1,211.60
12-7	2,365.10
12-15	2,672.70
12-20	2,954.00
12-25	2,567.30
12-28	2,836.00
12-30	1,025.00
12-31	1,190.40
	=$16,822.10

The bank statement contained two memoranda:

(1) A credit of $3,826.18 for the collection of a $3,681.18 note for Rintala Company plus interest of $160.00 and less a collection fee of $15.00. Rintala Company has not accrued any interest on the note.

(2) A debit of $575.19 for an NSF check written by D. Chagnon, a customer. At December 31, the check had not been redeposited in the bank.

At December 31, the cash balance per books was $12,757.81, and the cash balance per the bank statement was $20,515.70. The bank did not make any errors, but two errors were made by Rintala Company. (a) Using the four steps in the reconciliation procedure, prepare a bank reconciliation at December 31. (Reconcile the bank balance first and then the book balance.) (b) Prepare the adjusting entries based on the reconciliation. (Hint: 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 Accounts Receivable.)