So, it is saying that the EFT is wrong and I am missing something... Please help

Question

So, it is saying that the EFT is wrong and I am missing something... Please help

On October 31, 2018, the bank statement for the checking account of Blockwood Video shows a balance of $12,854, while the company's records show a balance of $12,341. Information that might be useful in preparing a bank reconcillation is as follows: a. Outstanding checks are $1,240. b. The October 31 cash receipts of $795 are not deposited in the bank until November 2. c. One check written in payment of utilities for $139 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $193. d. In accordance with prior authorization, the bank withdraws $452 directly from the checking account as payment on a note payable. The interest portion of that payment is $52 and the principal portion is $400. Blockwood has not recorded the direct withdrawal. e. Bank service fees of $26 are listed on the bank statement t. A deposit of $569 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 $77 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer.

Explanation / Answer

Bank Reconciliation Statement

d. EFT for note :

principal portion

of Note 400

interest on note(EFT) 52   

(452)

$11840

Bank's cash Balance Company cash Balance Per bank statement $12854 per general ledger $12341 a. check outstanding (1240) c. Company Error recitfy ($193 - $139) 54 b. Deposit outstanding 795

d. EFT for note :

principal portion

of Note 400

interest on note(EFT) 52   

(452)

f. Bank error (569) e. Services charges (26) g. NSF check (77) Bank balance per reconciliation

$11840

Company balance per reconciliation $11840

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