The bank portion of the bank reconciliation for Phillips Company at October 31, 2014, 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 checks and deposits:

The cash records per books for November showed the following.

The bank statement contained two bank memoranda:

1. A credit of $2,375 for the collection of a $2,300 note for Phillips Company plus interest of $91 and less a collection fee of $16. Phillips Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks $34.

At November 30, the cash balance per books was $5,958, and the cash balance per the bank statement was $9,100. The bank did not make any errors, but two errors were made by Phillips Company.

Instructions

(a)Using the four steps in the reconciliation procedure described, prepare a bank reconciliation at November 30.

(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.)