Bank reconciliation and entries Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Final Question Instructions The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 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 $6,440.B. A deposit of $1,850 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. $5,250 on a note left for collection. The face of the note was $5,000.D. A check for $390 returned with the statement had been incorrectly charged by the bank as $930.E. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account.F. Bank service charges for May amounted to $30.G. A check for $1,325 from Jennings Co. was returned by the bank due to insufficient funds. Instructions1. Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required.2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Chart of Accounts CHART OF ACCOUNTSBrentwood Bike Co.General Ledger ASSETS110Cash111Petty Cash112Accounts Receivable-Jennings Co.131Notes Receivable141Merchandise Inventory145Office Supplies146Store Supplies151Prepaid Insurance181Land191Office Equipment192Accumulated Depreciation-Office Equipment193Store Equipment194Accumulated Depreciation-Store Equipment LIABILITIES211Accounts Payable-Adkins Co.221Notes Payable222Interest Payable231Salaries Payable241Sales Tax Payable EQUITY310Owner, Capital311Owner, Drawing312Income Summary REVENUE410Sales610Interest Revenue EXPENSES510Cost of Merchandise Sold515Credit Card Expense516Cash Short and Over520Salaries Expense531Advertising Expense532Delivery Expense533Insurance Expense534Office Supplies Expense535Rent Expense536Repairs Expense537Selling Expenses538Store Supplies Expense561Depreciation Expense-Office Equipment562Depreciation Expense-Store Equipment590Miscellaneous Expense710Interest Expense Amount Descriptions Amount Descriptions Bank error in charging check as $390 instead of $930 Bank error in charging check as $930 instead of $390 Bank service charges Check returned because of insufficient funds Company error in recording note collected by bank Deposit of May 31, not recorded by bank Error in recording check Outstanding checks Note and interest collected by bank
Bank reconciliation and entries
Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Final Question
Instructions
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 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 $6,440.
B.
A deposit of $1,850 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. $5,250 on a note left for collection. The face of the note was $5,000.
D.
A check for $390 returned with the statement had been incorrectly charged by the bank as $930.
E.
A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account.
F.
Bank service charges for May amounted to $30.
G.
A check for $1,325 from Jennings Co. was returned by the bank due to insufficient funds.
Instructions
1.
Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. “Deduct:” or “Add:” will automatically appear if it is required.
2.
Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.
3.
If a
Chart of Accounts
CHART OF ACCOUNTS
Brentwood Bike Co.
General Ledger
ASSETS
110
Cash
111
Petty Cash
112
Accounts Receivable-Jennings Co.
131
Notes Receivable
141
Merchandise Inventory
145
Office Supplies
146
Store Supplies
151
Prepaid Insurance
181
Land
191
Office Equipment
192
Accumulated
193
Store Equipment
194
Accumulated Depreciation-Store Equipment
LIABILITIES
211
Accounts Payable-Adkins Co.
221
Notes Payable
222
Interest Payable
231
Salaries Payable
241
Sales Tax Payable
EQUITY
310
Owner, Capital
311
Owner, Drawing
312
Income Summary
REVENUE
410
Sales
610
Interest Revenue
EXPENSES
510
Cost of Merchandise Sold
515
Credit Card Expense
516
Cash Short and Over
520
Salaries Expense
531
Advertising Expense
532
Delivery Expense
533
Insurance Expense
534
Office Supplies Expense
535
Rent Expense
536
Repairs Expense
537
Selling Expenses
538
Store Supplies Expense
561
Depreciation Expense-Office Equipment
562
Depreciation Expense-Store Equipment
590
Miscellaneous Expense
710
Interest Expense
Amount Descriptions
Amount Descriptions
Bank error in charging check as $390 instead of $930
Bank error in charging check as $930 instead of $390
Bank service charges
Check returned because of insufficient funds
Company error in recording note collected by bank
Deposit of May 31, not recorded by bank
Error in recording check
Outstanding checks
Note and interest collected by bank
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