On October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,751, while the company’s records show a balance of $12,381. Information that might be useful in preparing a bank reconciliation is as follows: a. Outstanding checks are $1,280. b. The October 31 cash receipts of $835 are not deposited in the bank until November 2. c. One check written in payment of utilities for $147 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $174.d. In accordance with prior authorization, the bank withdraws $560 directly from the checking account as payment on a note payable. The interest portion of that payment is $60 and the principal portion is $500. Blockwood has not recorded the direct withdrawal. e. Bank service fees of $34 are listed on the bank statement. f. A deposit of $577 is recorded by the bank on October 13, but it did not belong to Blockwood. The deposit should have been made to the checking account of Hollybuster Video, a separate company. g. The bank statement includes a charge of $85 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer. Required: 1. Prepare a bank reconciliation for the Blockwood checking account on October 31, 2021. 2. Record the necessary cash adjustments.
On October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,751, while the company’s records show a balance of $12,381. Information that might be useful in preparing a bank reconciliation is as follows:
a. Outstanding checks are $1,280.
b. The October 31 cash receipts of $835 are not deposited in the bank until November 2.
c. One check written in payment of utilities for $147 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $174.
d. In accordance with prior authorization, the bank withdraws $560 directly from the checking account as payment on a note payable. The interest portion of that payment is $60 and the principal portion is $500. Blockwood has not recorded the direct withdrawal.
e. Bank service fees of $34 are listed on the bank statement.
f. A deposit of $577 is recorded by the bank on October 13, but it did not belong to Blockwood. The deposit should have been made to the checking account of Hollybuster Video, a separate company.
g. The bank statement includes a charge of $85 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer.
Required:
1. Prepare a bank reconciliation for the Blockwood checking account on October 31, 2021.
2. Record the necessary cash adjustments.
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