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Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,430 and checks written totaled $59,820. The bank statement indicated a balance of $21,840 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $9,730. b. A deposit of $7,920, representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Brentwood Bike Co. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $60. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31.

Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,430 and checks written totaled $59,820. The bank statement indicated a balance of $21,840 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $9,730. b. A deposit of $7,920, representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Brentwood Bike Co. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $60. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31.

Century 21 Accounting Multicolumn Journal
Century 21 Accounting Multicolumn Journal
11th Edition
ISBN:9781337679503
Author:Gilbertson
Publisher:Gilbertson
Chapter5: Cash Control Systems
Section: Chapter Questions
Problem 2AP
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2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. May 31 b. May 31 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $
Transcribed Image Text:2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. May 31 b. May 31 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $
Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,430 and checks written totaled $59,820. The bank statement indicated a balance of $21,840 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $9,730. b. A deposit of $7,920, representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Brentwood Bike Co. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $60. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 Cash balance according to bank statement $ Adjusted balance Cash balance according to company's records Adjusted balance +A LA
Transcribed Image Text:Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,430 and checks written totaled $59,820. The bank statement indicated a balance of $21,840 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $9,730. b. A deposit of $7,920, representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Brentwood Bike Co. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $60. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 Cash balance according to bank statement $ Adjusted balance Cash balance according to company's records Adjusted balance +A LA
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