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The following information applies to the questions displeyed below On October 31

ID: 2333476 • Letter: T

Question

The following information applies to the questions displeyed below On October 31. 2018, the bank statement for the checking account of lockwood Video shows a belance of $12.854, while the compary's records show a belance of $12,281 Information that might be useful in preparing a bank reconcilietion is as follows Outstanding dhecks are $1,180. b. The October 31 cash receipts of $735 are not deposited in the benk unsd November 2 e. One check written in peyment of utities for $127 is correctly recorded by the benk buat is recorded by Blockwood ase dbusment of 27 d. In accordence with prior authorization, the bank withdraws $440 directly from the checking account as payment on a note peyable. The interest portion of thet peyment is $40 and the principal portion is $400. Blockwood has not recorded the direct withdrawel e. Bank service fees of $14 are listed on the bank statement f. A deposit of557 is recorded by the bank on October t3 but it did not beleng to Biock ot d The depost should hm e been nde to the checking nocount of Hoeybater se . separete companY g. The bank staten ent includes a charge of 65 fo' an NS check Th. ehed. et erwa wan ee ben. eeeter nL·nd ow combo y, a-e-paymentom the euetom“

Explanation / Answer

Bank Reconciliation October 31, 2012 Bank's Cash Balance Company's Cash Balance Before reconciliation 12854 Before reconciliation 12281 Deposits outstanding 735 Company error 90 Checks outstanding -1180 EFT for note -440 Bank error -557 Service fees -14 NSF check -65 After reconciliation 11852 After reconciliation 11852 2 Cash 90       Utilities expense 90 Service fee expense 14 Accounts receivable 65 Interest expense 40 Note payable 400       Cash 519