Portland Boat Limited's bank statement for the month of November showed a balance per bank of $7,000. The company's Cash account in the general ledger had a balance of $5,659 at November 30. Other information is as follows:
(1) Cash receipts for November 30 recorded on the company's books were $5,200, but this amount does not appear on the bank statement.
(2) The bank statement shows a debit memorandum for $40 for cheque printing charges.
(3) Cheque No. 119 payable to Lynch Company was recorded in the general journal and cleared the bank for $248. A review of the accounts payable records shows a $36 credit balance in the account of Lynch Company and that the payment to it should have been for $284.
(4) The total amount of cheques still outstanding at November 30 amounted to $5,800.
(5) Cheque No. 138 was correctly written and paid by the bank for $409. The cash payment journal reflects an entry for Check No. 138 as a debit to Accounts Payable and a credit to Cash in Bank for $490.
(6) The bank returned an NSF check from a customer for $560.
(7) The bank included a credit memorandum for $1,260, which represents collection of a customer's note by the bank for the company; principal amt of the note wa $1,200 and interst was $60. interest has not been accrued.
Instructions
(a) Prepare a bank reconciliation for Portland Boat Limited at November 30.
(b) Prepare any adjusting entries necessary as a result of the bank reconciliation.