On October 31, 2015, 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.

1. Prepare a bank reconciliation for the Blockwood checking account on October 31, 2015.
2. Record the necessary cash adjustments.

  • CreatedJuly 15, 2014
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