Paragraph Styles Review Exercise 1 a) Bank statement balance of the Cash account (balasce per bank) VideoBuster is bank balance is $2,050. b) VideoBuster's $145 deposit placed in the bank's night depository on October 31 is not recorded on its bank statement c) VideBuster's comparison of canceled checks with its books shows two checks outstanding. No. 124 for $150 and No. 126 for $200 d) VideoBuster's comparison of canceled checks with its books shows two checks outstanding: No. 124 for $150 and No. 126 for $200 e) VideoBuster's book balance is $1,404,58 VideoBuster's bank statement includes a credit memorandum showing the bark collected a note receivable for the company on October 23. The note's proceeds of $500 (minus a $15 collection fee) are credited to the company's account. 9) VideoBuster's bank statement also shows a credit of $8.42 for interest earned on the average cash balance. There was no prior notification of this item, and it is not yet recorded h) Debits on VideoBuster's bank statement that are not yet recorded include (a) a $23 charge for check printing and (b) an NSF check for $20 plus a related $10 processing fee. (The NSF check is dated October 16 and was included in the book balance.) Required: Prepare a bank reconciliation for VideoBuster using the above information: Solution: O E