On October 31, 2021, the bank statement for the checking account of Blockwood Video shows a balance of $12,818, while the company’s records show a balance of $12,326. Information that might be useful in preparing a bank reconciliation is as follows: Outstanding checks are $1,225. The October 31 cash receipts of $780 are not deposited in the bank until November 2. One check written in payment of utilities for $136 is correctly recorded by the bank but is recorded by Blockwood as a disbursement of $163. In accordance with prior authorization, the bank withdraws $449 directly from the checking account as payment on a note payable. The interest portion of that payment is $49 and the principal portion is $400. Blockwood has not recorded the direct withdrawal. Bank service fees of $23 are listed on the bank statement. A deposit of $566 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. The bank statement includes a charge of $74 for an NSF check. The check is returned with the bank statement, and the company will seek payment from the customer. 2. Record the necessary cash adjustments

The strength of the economy depends on the balance pf production and consumption of goods and consumption of goods and services

Presented below is a list of possible transactions. analyze the effect of the 18 transactions on the financial statement categories indicated. transactions assets liabilities owners’ equity net income 1. purchased inventory for $80,000 on account (assume perpetual system is used). 2. issued an $80,000 note payable in payment on account (see item 1 above). 3. recorded accrued interest on the note from item 2 above. 4. borrowed $100,000 from the bank by signing a 6-month, $112,000, zero-interest-bearing note. 5. recognized 4 months’ interest expense on the note from item 4 above. 6. recorded cash sales of $75,260, which includes 6% sales tax. 7. recorded wage expense of $35,000. the cash paid was $25,000; the difference was due to various amounts withheld. 8. recorded employer’s payroll taxes. 9. accrued accumulated vacation pay. 10. recorded an asset retirement obligation. 11. recorded bonuses due to employees. 12. recorded a contingent loss on a lawsuit that the company will probably lose. 13. accrued warranty expense (assume expense warranty approach). 14. paid warranty costs that were accrued in item 13 above. 15. recorded sales of product and related service-type warranties. 16. paid warranty costs under contracts from item 15 above. 17. recognized warranty revenue (see item 15 above). 18. recorded estimated liability for premium claims outstanding.

Atrough in the business cycle occurs when