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 $12,694, while the company’s records show a balance of $12,316. Information that might be useful in preparing a bank reconciliation is as follows: Outstanding checks are $1,215. The October 31 cash receipts of $770 are not deposited in the bank until November 2. One check written in payment of utilities for $134 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $143. In accordance with prior authorization, the bank withdraws $547 directly from the checking account as payment on a note payable. The interest portion of that payment is $47 and the principal portion is $500. Blockwood has not recorded the direct withdrawal. Bank service fees of $21 are listed on the bank statement. A deposit of $564 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 $72 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. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

Answer 1

Requirement 1)

Bank's cash balance		Company's cash balance
Per bank statement	12,694	Per general ledger	12,316
Deposit outstanding	770	Nsf checks	(72)
Bank error	(564)	Bank service fees	(21)
Outstanding checks	(1,215)	Interest portion on the note	(47)
		Principal portion on notes	(500)
		Error	9
Adjusted Bank Balance	11,685	Adjusted Cash Balance	11,685

.

Requirement 2)

Date	Accounts	Debit	Credit
2021
Oct 31	Accounts Receivables	72
	Cash		72
31	Bank Charges	21
	Cash		21
31	Interest Expense	47
	Cash		47
31	Notes Payable	500
	Cash		500
31	Cash	9
	Utility Expense		9

Or Make Compound Entries as per the format:

Date	Accounts	Debit	Credit
2021
Oct 31	Accounts Receivables	72
	Bank Charges	21
	Interest Expense	47
	Notes Payable	500
	Cash		640
31	Cash	9
	Utility Expense		9