Problem 4-2B (Algo) Prepare the bank reconciliation and record cash adjustments (LO4-5)

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:

1. Outstanding checks are $1,250.
2. The October 31 cash receipts of $805 are not deposited in the bank until November 2.
3. The EFT payment for utilities of $141 is correctly recorded by the bank but is recorded by Cousins as a disbursement of $411.
4. 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.
5. Bank service fees of $28 are listed on the bank statement.
6. 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.
7. 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.

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

Prepare a bank reconciliation for theCousins checking account on October 31, 2024. (Amounts to be deducted should be indicated with a minus sign.)

COUSINS VIDEO
Bank Reconciliation
October 31, 2024
Banks Cash Balance	Companys Cash Balance
Per bank statement		Per general ledger
Bank balance per reconciliation		Company balance per reconciliation