The bank portion of the bank reconciliation for London Company at October 31, 1996, was as follows:

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 \(\$ 2,105.00\) for the collection of a \(\$ 2,000\) note for London Company plus interest of \(\$ 120\) and less a collection fee of \(\$ 15\). London Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks, \(\$ 50.00\).
At November 30 the cash balance per books was \(\$ 11,123.90\), and the cash balance per the bank statement was \(\$ 17,604.60\). The bank did not make any errors, but two errors were made by London Company.
\section*{Instructions}

(a) Using the four steps in the reconciliation procedure described on pages 305-6, prepare a bank reconciliation at November 30.

(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 Accounts Receivable.)

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Cash balance per bank Add: Deposits in transit Less: Outstanding checks Check Number 2451 2470 2471 2472 2474 Adjusted cash balance per bank LONDON COMPANY Bank Reconciliation October 31, 1996 Check Amount $1,260.40 720.10 844.50 426.80 1,050.00 $12,367.90 1,530.20 13,898.10 4,301.80 $ 9,596.30