Question

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. (Amounts to be deducted should be indicated with a minus sign.) BLOCKWOOD VIDEO Bank Reconciliation October 31, 2021 Company's Cash Balance Per general ledger Bank's Cash Balance Per bank statement

Answer 1

Bank reconciliation
October 31 2021
Bank's cash balance			Company's cash balance
Per bank statement		12751	per general ledger		12381
deposit outstanding		835	Nsf checks		-85
bank error		-577	bank service fees		-34
outstanding checks		-1280	Interest portion on note		-60
			principal portion on notes		-500
			error		27
Bank balance reconciliation		11729	company balance reconciliation		11729

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