The bank reconciliation statement for Watson Pty Ltd at 31 October 2018 is shown here: WATSON PTY LTD Bank reconciliation statement as at 31 October 2018 Cash balance as per bank statement Add: Outstanding deposits $12367.90 Cr 1530.20 13898.10 Less: Unpresented cheques Cheque number 2451 2470 2471 2472 2474 Cheque amount $1 260.40 720.10 844.50 426.80 1 050.00 Cash balance as per ledger 4301.80 $ 9596.30 Dr The November bank statement showed the following cheques and deposits: Date 1/11 4/11 4/11 5/11 8/11 8/11 15/11 18/11 27/11 28/11 29/11 Information from bank statement Cheques Number Amount 2470 $ 720.10 2471 844.50 2474 1 050.00 2475 1 640.70 2476 2 830.00 600.00 2479 1 750.00 2480 1330.00 2481 695.40 2483 575.50 2486 900.00 $12 936.20 Date 1/11 4/11 8/11 13/11 18/11 21/11 25/11 28/11 29/11 Deposits Amount $ 1530.20 1 211.60 990.10 2575.00 1 472.70 2 945.00 2 567.30 1 650.00 1 186.00 2477 $16 127.90 The company's cash records for November showed the following: Date 1/11 2/11 2/11 4/11 8/11 10/11 15/11 18/11 Cheque number 2475 2476 2477 2478 2479 2480 2481 2482 Cash payments journal (extract) Cheque Amount Date number $1640.70 20/11 2483 2830.00 22/11 2484 600.00 23/11 2485 538.20 24/11 2486 1570.00 29/11 2487 1330.00 30/11 2488 695.40 612.00 Amount $ 575.50 829.50 974.80 900.00 398.00 800.00 Cash receipts journal (extract) Amount Date banked 3/11 $ 1211.60 7/11 990.10 12/11 2 575.00 17/11 1 472.70 20/11 2954.00 24/11 2 567.30 27/11 1 650.00 29/11 1 186.00 30/11 1 225.00 Total $15 831.70 Total $14294.10 The bank statement contained the following two items: 1. A credit of $1905 for the collection of an $1800 note for Watson Pty Ltd; interest of $120; a collection fee of $15. Watson Pty Ltd has not accrued any interest. 2. A debit for the printing of additional company cheques, $70. At 30 November the cash balance as per company records was $11 133.90 and the cash balance as per bank statement was $17 394.60. The bank did not make any errors, but two errors were made by Watson Pty Ltd. Required (a) Using the procedure described under the heading 'Reconciliation procedure (in sec- tion 7.4), prepare a bank reconciliation as at 30 November. (b) Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording cheques should be made to accounts payable. The correction of any errors relating to recording cash receipts should be made to accounts receivable.) The bank reconciliation statement for Watson Pty Ltd at 31 October 2018 is shown here: WATSON PTY LTD Bank reconciliation statement as at 31 October 2018 Cash balance as per bank statement Add: Outstanding deposits $12367.90 Cr 1530.20 13898.10 Less: Unpresented cheques Cheque number 2451 2470 2471 2472 2474 Cheque amount $1 260.40 720.10 844.50 426.80 1 050.00 Cash balance as per ledger 4301.80 $ 9596.30 Dr The November bank statement showed the following cheques and deposits: Date 1/11 4/11 4/11 5/11 8/11 8/11 15/11 18/11 27/11 28/11 29/11 Information from bank statement Cheques Number Amount 2470 $ 720.10 2471 844.50 2474 1 050.00 2475 1 640.70 2476 2 830.00 600.00 2479 1 750.00 2480 1330.00 2481 695.40 2483 575.50 2486 900.00 $12 936.20 Date 1/11 4/11 8/11 13/11 18/11 21/11 25/11 28/11 29/11 Deposits Amount $ 1530.20 1 211.60 990.10 2575.00 1 472.70 2 945.00 2 567.30 1 650.00 1 186.00 2477 $16 127.90 The company's cash records for November showed the following: Date 1/11 2/11 2/11 4/11 8/11 10/11 15/11 18/11 Cheque number 2475 2476 2477 2478 2479 2480 2481 2482 Cash payments journal (extract) Cheque Amount Date number $1640.70 20/11 2483 2830.00 22/11 2484 600.00 23/11 2485 538.20 24/11 2486 1570.00 29/11 2487 1330.00 30/11 2488 695.40 612.00 Amount $ 575.50 829.50 974.80 900.00 398.00 800.00 Cash receipts journal (extract) Amount Date banked 3/11 $ 1211.60 7/11 990.10 12/11 2 575.00 17/11 1 472.70 20/11 2954.00 24/11 2 567.30 27/11 1 650.00 29/11 1 186.00 30/11 1 225.00 Total $15 831.70 Total $14294.10 The bank statement contained the following two items: 1. A credit of $1905 for the collection of an $1800 note for Watson Pty Ltd; interest of $120; a collection fee of $15. Watson Pty Ltd has not accrued any interest. 2. A debit for the printing of additional company cheques, $70. At 30 November the cash balance as per company records was $11 133.90 and the cash balance as per bank statement was $17 394.60. The bank did not make any errors, but two errors were made by Watson Pty Ltd. Required (a) Using the procedure described under the heading 'Reconciliation procedure (in sec- tion 7.4), prepare a bank reconciliation as at 30 November. (b) Prepare the adjusting entries based on the reconciliation. (Note: The correction of any errors pertaining to recording cheques should be made to accounts payable. The correction of any errors relating to recording cash receipts should be made to accounts receivable.)