On October 31, 2024, the bank statement for the cash account of Northstar Video shows a balance of $12,757, while the companys records show a cash balance of $12,286. Information that might be useful in preparing a bank reconciliation is as follows:

Outstanding checks are $1,185.

The October 31 cash receipts of $740 are not deposited in the bank until November 2.

The EFT payment for utilities of $128 is correctly recorded by the bank but is recorded by Northstar as a disbursement of $218.

In accordance with prior authorization, the bank withdraws $541 directly from the account as payment on a note payable. The interest portion of that payment is $41 and the principal portion is $500. Northstar has not recorded the direct withdrawal.

Bank service fees of $15 are listed on the bank statement.

A deposit of $558 is recorded by the bank on October 13, but it did not belong to Northstar. The deposit should have been made to the account of Hollybuster Video, a separate company.

The bank statement includes a charge of $66 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 Northstar checking account on October 31, 2024. 2. Record the necessary cash adjustments.

	Northstar	video
	Bank	Reconciliation
	October 31, 2024
	Bank cash Balance		Company's Cash Balance
Per bank statement		Per general ledger
Bank balance per reconciliation		Company balance per reconciliation

Required 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.)

Journal entry worksheet

Record the amounts that increase cash.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
1

Record the amounts that decrease cash.

Note: Enter debits before credits.

Transaction	General Journal	Debit	Credit
2