Bank Reconciliation and Entries
The cash account for Brentwood Bike Co. at May 1indicated a balance of $12,770. During May, the total cashdeposited was $64,320 and checks written totaled $59,720.The bank statement indicated a balance of $21,800 on May31. Comparing the bank statement, the canceled checks, and theaccompanying memos with the records revealed the followingreconciling items:
Checks outstanding totaled $9,710.
A deposit of $7,910, representing receipts of May 31,had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,180on a note left for collection. The face of the note was$3,860.
A check for $360 returned with the statement had beenincorrectly charged by the bank as $630.
A check for $850 returned with the statement had beenrecorded by Brentwood Bike Co. as $580. The check was for thepayment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to$50.
A check for $960 from Jennings Co. was returned by thebank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as ofMay 31.
2. Journalize the necessary entries (a.)that increase cash and (b.) that decrease cash. The accounts havenot been closed. For a compound transaction, if an amount box doesnot require an entry, leave it blank.
Bank Reconciliation and Entries
The cash account for Brentwood Bike Co. at May 1indicated a balance of $12,770. During May, the total cashdeposited was $64,320 and checks written totaled $59,720.The bank statement indicated a balance of $21,800 on May31. Comparing the bank statement, the canceled checks, and theaccompanying memos with the records revealed the followingreconciling items:
Checks outstanding totaled $9,710.
A deposit of $7,910, representing receipts of May 31,had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,180on a note left for collection. The face of the note was$3,860.
A check for $360 returned with the statement had beenincorrectly charged by the bank as $630.
A check for $850 returned with the statement had beenrecorded by Brentwood Bike Co. as $580. The check was for thepayment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to$50.
A check for $960 from Jennings Co. was returned by thebank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as ofMay 31.
2. Journalize the necessary entries (a.)that increase cash and (b.) that decrease cash. The accounts havenot been closed. For a compound transaction, if an amount box doesnot require an entry, leave it blank.
Related questions
Bank Reconciliation and Entries
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,780. During May, the total cash deposited was $74,910 and checks written totaled $69,550. The bank statement indicated a balance of $25,390 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $11,310.
A deposit of $9,210, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,870 on a note left for collection. The face of the note was $4,490.
A check for $360 returned with the statement had been incorrectly charged by the bank as $630.
A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to $60.
A check for $1,120 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 | $ | |
| Add deposit of May 31, not recorded by bank | $ | |
| Add bank error in charging check as $630 instead of $360 | ||
| $ | ||
| Deduct outstanding checks | ||
| Adjusted balance | $ | |
| Cash balance according to company's records | $ | |
| Add note and interest collected by bank | ||
| $ | ||
| Deduct check returned because of insufficient funds | $ | |
| Deduct bank service charges | ||
| Deduct error in recording check | ||
| Adjusted balance | $ | |
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 | Cash | ||
| Notes Receivable | |||
| Interest Revenue | |||
| b. May 31 | Accounts Payable-Adkins Co. | ||
| Accounts Receivable-Jennings Co. | |||
| Miscellaneous Expense | |||
| Cash |
3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
$
I STARTED BUT I AM NOT SURE WHATS CORRECT
Bank Reconciliation and Entries
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,930. During May, the total cash deposited was $70,330 and checks written totaled $65,300. The bank statement indicated a balance of $23,840 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $10,620.
A deposit of $8,650, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,570 on a note left for collection. The face of the note was $4,220.
A check for $360 returned with the statement had been incorrectly charged by the bank as $630.
A check for $630 returned with the statement had been recorded by Brentwood Bike Co. as $360. The check was for the payment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to $70.
A check for $1,050 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 | $ | |
| Add deposit of May 31, not recorded by bank | $ | |
| Add bank error in charging check as $630 instead of $360 | ||
| $ | ||
| Deduct outstanding checks | ||
| Adjusted balance | $ | |
| Cash balance according to company's records | $ | |
| Add note and interest collected by bank | ||
| $ | ||
| $ | ||
| Deduct error in recording check | ||
| Adjusted balance | $ | |
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 | Cash | ||
| Notes Receivable | |||
| Interest Revenue | |||
| b. May 31 | Accounts Payable-Adkins Co. | ||
3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
$
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,350. During May, the total cash deposited was $66,800 and checks written totaled $62,020. The bank statement indicated a balance of $22,650 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $10,090.
A deposit of $8,220, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,340 on a note left for collection. The face of the note was $4,010.
A check for $270 returned with the statement had been incorrectly charged by the bank as $720.
A check for $970 returned with the statement had been recorded by Brentwood Bike Co. as $790. The check was for the payment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to $60.
A check for $1,000 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 | $ | |
| Add deposit of May 31, not recorded by bank | $ | |
| Add bank error in charging check as $720 instead of $270 | ||
| $ | ||
| Deduct bank service charges | ||
| Adjusted balance | $ | |
| Cash balance according to company's records | $ | |
| Add note and interest collected by bank | ||
| $ | ||
| Deduct bank error in charging check as $720 instead of $270 | $ | |
| Deduct bank service charges | ||
| Deduct error in recording check | ||
| Adjusted balance | $ | |
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 were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
$
