QUESTION: ON OCTOBER 31, 2015, THE BANK STATEMENT FOR THE CHECKING ACCOUNT OF BLOCKWOOD VIDEO SHOWS A BALANCE OF $12,818, WHILE THE COMPANY S RECORDS SHOW A BALANCE OF $12,326. INFORMATION THAT MIGHT BE USEFUL IN PREPARING A BANK RECONCILIATION IS AS FOLLOWS: A. OUTSTANDING CHECKS ARE $1,225. B. THE OCTOBER 31 CASH RECEIPTS OF $780 ARE NOT DEPOSITED IN THE BANK UNTIL NOVEMBER 2. C. ONE CHECK WRITTEN IN PAYMENT OF UTILITIES FOR $136 IS CORRECTLY RECORDED BY THE BANK BUT IS RECORDED BY BLOCKWOOD AS DISBURSEMENT OF $163. D. IN ACCORDANCE WITH PRIOR AUTHORIZATION, THE BANK WITHDRAWS $449 DIRECTLY FROM THE CHECKING ACCOUNT AS PAYMENT ON A NOTE PAYABLE. THE INTEREST PORTION OF THAT PAYMENT IS $49 AND THE PRINCIPAL PORTION IS $400. BLOCKWOOD HAS NOT RECORDED THE DIRECT WITHDRAWAL. E. BANK SERVICE FEES OF $23 ARE LISTED ON THE BANK STATEMENT. F. A DEPOSIT OF $566 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 $74 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, 2015. 2. RECORD THE NECESSARY CASH ADJUSTMENTS.
QUESTION: ON OCTOBER 31, 2015, THE BANK STATEMENT FOR THE CHECKING ACCOUNT OF BLOCKWOOD VIDEO SHOWS A BALANCE OF $12,818, WHILE THE COMPANY S RECORDS SHOW A BALANCE OF $12,326. INFORMATION THAT MIGHT BE USEFUL IN PREPARING A BANK RECONCILIATION IS AS FOLLOWS: A. OUTSTANDING CHECKS ARE $1,225. B. THE OCTOBER 31 CASH RECEIPTS OF $780 ARE NOT DEPOSITED IN THE BANK UNTIL NOVEMBER 2. C. ONE CHECK WRITTEN IN PAYMENT OF UTILITIES FOR $136 IS CORRECTLY RECORDED BY THE BANK BUT IS RECORDED BY BLOCKWOOD AS DISBURSEMENT OF $163. D. IN ACCORDANCE WITH PRIOR AUTHORIZATION, THE BANK WITHDRAWS $449 DIRECTLY FROM THE CHECKING ACCOUNT AS PAYMENT ON A NOTE PAYABLE. THE INTEREST PORTION OF THAT PAYMENT IS $49 AND THE PRINCIPAL PORTION IS $400. BLOCKWOOD HAS NOT RECORDED THE DIRECT WITHDRAWAL. E. BANK SERVICE FEES OF $23 ARE LISTED ON THE BANK STATEMENT. F. A DEPOSIT OF $566 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 $74 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, 2015. 2. RECORD THE NECESSARY CASH ADJUSTMENTS.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:QUESTION:
ON OCTOBER 31, 2015, THE BANK STATEMENT FOR THE CHECKING ACCOUNT OF
BLOCKWOOD VIDEO SHOWS A BALANCE OF $12,818, WHILE THE COMPANY S RECORDS
SHOW A BALANCE OF $12,326. INFORMATION THAT MIGHT BE USEFUL IN PREPARING A
BANK RECONCILIATION IS AS FOLLOWS:
A. OUTSTANDING CHECKS ARE $1,225.
B. THE OCTOBER 31 CASH RECEIPTS OF $780 ARE NOT DEPOSITED IN THE BANK UNTIL
NOVEMBER 2.
C. ONE CHECK WRITTEN IN PAYMENT OF UTILITIES FOR $136 IS CORRECTLY RECORDED
BY THE BANK BUT IS RECORDED BY BLOCKWOOD AS DISBURSEMENT OF $163.
D. IN ACCORDANCE WITH PRIOR AUTHORIZATION, THE BANK WITHDRAWS $449 DIRECTLY
FROM THE CHECKING ACCOUNT AS PAYMENT ON A NOTE PAYABLE. THE INTEREST
PORTION OF THAT PAYMENT IS $49 AND THE PRINCIPAL PORTION IS $400. BLOCKWOOD
HAS NOT RECORDED THE DIRECT WITHDRAWAL.
E. BANK SERVICE FEES OF $23 ARE LISTED ON THE BANK STATEMENT.
F. A DEPOSIT OF $566 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 $74 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, 2015.
2. RECORD THE NECESSARY CASH ADJUSTMENTS.
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