1. On October 31, 2024, Affleck Companys general ledger shows a cash account balance of $8,424. The companys cash receipts for the month total $74,500, of which $71,340 has been deposited in the bank. In addition, the company has written checks for $72,494, of which $71,144 has been processed by the bank.

The bank statement reveals an ending balance of $12,384 and includes the following items not yet recorded by Affleck: bank service fees of $240, note receivable collected by the bank of $5,900, and interest earned on the note of $770. After closer inspection, Affleck realizes that the bank incorrectly charged the companys account $660 for an automatic withdrawal that should have been charged to another customers account. The bank agrees to the error.

Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2024. 2. Record the necessary entries to adjust the balance for cash.

2. On October 31, 2024, the bank statement for the cash account of Cousins Video shows a balance of $12,976, while the companys records show a cash balance of $12,351. Information that might be useful in preparing a bank reconciliation is as follows:

Outstanding checks are $1,250.

The October 31 cash receipts of $805 are not deposited in the bank until November 2.

The EFT payment for utilities of $141 is correctly recorded by the bank but is recorded by Cousins as a disbursement of $411.

In accordance with prior authorization, the bank withdraws $554 directly from the account as payment on a note payable. The interest portion of that payment is $54 and the principal portion is $500. Cousins has not recorded the direct withdrawal.

Bank service fees of $28 are listed on the bank statement.

A deposit of $571 is recorded by the bank on October 13, but it did not belong to Cousins. The deposit should have been made to the account of Hollybuster Video, a separate company.

The bank statement includes a charge of $79 for an NSF check from a customer. The check is returned with the bank statement, and the company will seek payment from the customer.

Required: 1. Prepare a bank reconciliation for the Cousins checking account on October 31, 2024. 2. Record the necessary cash adjustments.