The bank portion of the bank reconciliation for Kingston Company at October 31, 2007, is shown here.

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The bank portion of the bank reconciliation for Kingston Company at October 31, 2007, is shown here.
KINGSTON COMPANY
  Bank Reconciliation
   October 31, 2007
Cash balance per bank                                                   $12,367.90
Add: Deposits in transit                                                      1,530.20
  13,898.10
Less: Outstanding checks
Check Number                  Check Amount
2451                                       $ 1,260.40
2470                                              720.10
2471                                              844.50
2472                                              426.80
2474                                           1,050.00                                              4,301.80
Adjusted cash balance per bank                                                                $ 9,596.30
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.
Checks                                                                                                  Deposits
Date      Number              Amount                                              Date      Amount
11-1       2470                      $ 720.10                                                11-1       $ 1,530.20
11-2       2471                       844.50                                                   11-4       1,211.60
11-5       2474                       1,050.00                                              11-8       990.10
11-4       2475                       1,640.70                                               11-13    2,575.00
11-8       2476                      2,830.00                                              11-18    1,472.70
11-10     2477                       600.00                                                   11-21     2,945.00
11-15     2479                       1,750.00                                              11-25     2,567.30
11-18     2480                       1,330.00                                               11-28    1,650.00
11-27     2481                       695.40                                                   11-30     1,186.00
11-30     2483                       575.50                                                   Total $16,127.90
11-29     2487                       398.00
Total $12,434.20
The cash records per books for November showed the following.
Cash Payments Journal
Date      Number              Amount               Date     Number               Amount
11-1       2475                       $1,640.70             11-20     2483                      $ 575.50
11-2       2476                       2,830.00               11-22     2484                      829.50
11-2       2477                       600.00                  11-23     2485                      974.80
11-4       2478                       538.20                   11-24     2486                      900.00
11-8       2479                       1,570.00              11-29     2487                      398.00
11-10     2480                       1,330.00               11-30     2488                       800.00
11-15     2481                       695.40                  Total                                      $14,294.10
11-18     2482                      612.00
Cash Receipts
Journal
Date                     Amount
11-3                 $ 1,211.60
11-7                       990.10
11-12                    2,575.00
11-17                     1,472.70
11-20                     2,954.00
11-24                     2,567.30
11-27                     1,650.00
11-29                     1,186.00
11-30                     1,218.00
Total                      $15,824.70
The bank statement contained two bank memoranda:
1. A credit of $1,875 for the collection of an $1,800 note for Kingston Company plus interest of $90 and less a collection fee of $15. Kingston Company has not accrued any interest on the note.
2. A debit for the printing of additional company checks $85.
At November 30 the cash balance per books was $11,126.90 and the cash balance per bank statement was $17,851.60. The bank did not make any errors, but two errors were made by Kingston Company.
Instructions
(a) Using the four steps in the reconciliation procedure , prepare a bank reconciliation at November 30, 2007.
(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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