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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.

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 16CE
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complete the bank reconciliation and journal entries
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 S500. 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 $85 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer. BLOCKWOOD VIDEO BANK RECONCILIATION October 31, 2021 Balance per Bank Balance per Books Unadjusted Balance per Bank at 10/31 Unadjusted Balance per Books at 10/31 2$ Additions: Additions: Subtractions: Subtractions: $ $ Adjusted Balance per Books at 10/31 Adjusted Balance per Bank at 10/31 Made by Dr. Baaske – Do not share.
Transcribed Image Text: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 S500. 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 $85 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer. BLOCKWOOD VIDEO BANK RECONCILIATION October 31, 2021 Balance per Bank Balance per Books Unadjusted Balance per Bank at 10/31 Unadjusted Balance per Books at 10/31 2$ Additions: Additions: Subtractions: Subtractions: $ $ Adjusted Balance per Books at 10/31 Adjusted Balance per Bank at 10/31 Made by Dr. Baaske – Do not share.
Date Account Debit Credit ily eynense 31
Transcribed Image Text:Date Account Debit Credit ily eynense 31
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