The bank portion of the bank reconciliation for Maloney Company at October 31, 2024, 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:

Additional information from the bank statement:
1. The EFT of $2,479 is an electronic transfer from a customer in payment of its account. The amount includes $49 of interest that Maloney Company had not previously accrued.
2. The NSF for $260 is a $245 cheque from a customer, Pendray Holdings, in payment of its account, plus a $15 processing fee. The company’s policy is to pass on all NSF service charges to the customer.
3. The LN is a payment of a note payable with the bank and consists of $250 interest and $2,000 principal.
4. At November 30, the cash balance per books was $10,160. The bank did not make any errors. The cash records per books for November follow. Two errors were made by Maloney Company.

Instructions
a. Prepare a bank reconciliation at November 30.
b. Prepare the necessary journal entries at November 30.

Taking It Further

When there is an error, how does a company determine if it was a bank error or a company error? How would you know if the bank has made an error in your account?

Transcribed Image Text:

Cash balance per bank Add: Deposits in transit MALONEY COMPANY Bank Reconciliation October 31, 2024 Less: Outstanding cheques #2451 #2470 #2471 #2472 #2474 Adjusted cash balance per bank $1,260 920 845 504 1,050 $11,545 1,530 13,075 4,579 $ 8,496