Question

Required information The following information applies to the questions displayed below) On October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,985, while the company's records show a balance of $12,366. Information that might be useful in preparing a bank reconciliation is as follows a. Outstanding checks are $1,265. b. The October 31 cash receipts of $820 are not deposited in the bank until November 2 c. One check written in payment of utilities for $144 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $414 d. In accordance with prior authorization, the bank withdraws $557 directly from the checking account as payment on a note payable. The interest portion of that payment is $57 and the principal portion is $500. Blockwood has not recorded the direct withdrawal e. Bank service fees of $31 are listed on the bank statement f. A deposit of $574 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 $82 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer 2. Record the necessary cash adjustments. (no entry is required for a transaction/event, select "No Journal Entry Required in the first account field.) View transactions Journal entry worksheet Record the amounts that increase cash Note: Enter debits before credits Transaction General Journal Debit Credit T Record entry Vemal

Answer 1

Journal entry
Account NAME	Debit	Credit
Note Payable	500
Interest Expense	57
Bank Charges	113
To Utilities Expense		270
To BANK Account		400
(being adjustment entry passed)
Blockvood Video
Bank Reconciliation Statement
Month Ended October 31
Cash Balance as per bank statement	12985
Add: Deposit in Transit	820
Less: Wrong amount booked	-574
Less: Outstanding checks	-1265
Adjusted Cash Balance	11966
Cash balance as per books	12366
Add:
Error rectification	270
Less: Note Paid	-500
Interest Paid	-57
Bank Service charges	-113
Adjusted Cash Balance	11966