PART 3 - Prepare the bank reconciliation and the necessary journal entries based on the information provided. 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: Outstanding checks are $1,280. The October 31 cash receipts of $835 are not deposited in the bank until November 2. 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 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. Bank service fees of $34 are listed on the bank statement. 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. 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.
PART 3 - Prepare the bank reconciliation and the necessary journal entries based on the information provided. 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: Outstanding checks are $1,280. The October 31 cash receipts of $835 are not deposited in the bank until November 2. 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 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. Bank service fees of $34 are listed on the bank statement. 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. 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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complete the bank reconciliation and journal entries
Transcribed Image Text:**Bank Reconciliation and Journal Entries for Blockwood Video**
*Overview:*
On October 31, 2021, Blockwood Video's bank statement displayed a checking account balance of $12,751, whereas the company's internal records indicated a balance of $12,381. To reconcile these amounts, the following information is relevant:
- Outstanding checks total $1,280.
- Cash receipts of $835 dated October 31 were not deposited until November 2.
- A check for utilities of $147 is accurately recorded by the bank but incorrectly recorded by Blockwood as a $174 disbursement.
- A bank withdrawal of $560 (comprising $60 interest and $500 principal) is not recorded by Blockwood, authorized directly from the account.
- Bank service fees amounting to $34 are reflected on the bank statement.
- A $577 deposit on October 13 noted by the bank did not belong to Blockwood but should have been credited to Hollybuster Video.
- An NSF check charge of $85 is noted on the bank statement. The check is returned and Blockwood will seek repayment.
*Bank Reconciliation Table (October 31, 2021):*
**Balance per Bank:**
- Unadjusted Balance per Bank at 10/31: $12,751
- Additions:
- Subtractions:
- Adjusted Balance per Bank at 10/31:
**Balance per Books:**
- Unadjusted Balance per Books at 10/31: $12,381
- Additions:
- Subtractions:
- Adjusted Balance per Books at 10/31:
*Prepared by Dr. Baaske – Do not share.*
**Graph/Diagram Explanation:**
The document contains a table titled "BLOCKWOOD VIDEO BANK RECONCILIATION," divided into two sections: "Balance per Bank" and "Balance per Books." These sections are meant to reconcile the differences between the bank statement and the company's internal records. Each section includes slots for unadjusted balances, additions, subtractions, and adjusted balances as of October 31. The purpose is to accurately reflect the financial status by the end of that date.
Transcribed Image Text:The image shows an accounting table with columns labeled as Date, Account, Debit, and Credit. Here is the transcription of the table:
| Date | Account | Debit | Credit |
|------|-----------------|-------|--------|
| | Cash | | 317 |
| | Utility Expense | 500 | |
| | Notes Payable | | 500 |
| | Cash | 60 | |
| | Service Revenue | | 60 |
| | Bank Loan Payable | 311 | |
| | | | 311 |
- The table lists financial transactions involving different accounts.
- The entries show how funds are debited and credited from various accounts, such as Cash, Utility Expense, and Notes Payable.
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