The bank portion of the bank reconciliation for Maloney 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:

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.
3. The LN is a payment of a note payable with the bank and consists of $250 interest and $2,000 principal.
4. The bank did not make any errors. The cash records per books for November follow. Two errors were made by Maloney Company.

Instructions
(a) Determine the unadjusted cash balance per books as at November 30, before reconciliation.
(b) Prepare a bank reconciliation at November 30.
(c) Prepare the necessary adjusting entries at November 30. The correction of any errors in the recording of cheques should be made to Accounts Payable. The correction of any errors in the recording of cash receipts should be made to Accounts Receivable.)
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?

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MALONEY COMPANY Bank Reconciliation October 31, 2014 Cash balance per bank Add: Deposits in transit $11,545 1,530 13,075 Less: Outstanding cheques #2451 #2470 #2471 #2472 #2474 $1,260 920 845 504 1,050 4,579 Adjusted cash balance per bank $ 8,496 MALONEY COMPANY Bank Statement November 30, 2014 Cheques and Other Debits Date Nov. 3 1 2 2 16,777 2 5 37270478 t-25 658992-0 2 u222222 1468 573 75 76 77 78 79 u-22 2 2 2 2 2 2 334680 4