Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,170. During May, the total cash deposited was $71,700 and checks written totaled $66,570. The bank statement indicated a balance of $24,310 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 $10,830. A deposit of $8,820, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,660 on a note left for collection. The face of the note was $4,300. 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 $40. A check for $1,080 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 $fill in the blank 70066cfa8f90fa9_1 $fill in the blank 70066cfa8f90fa9_3 fill in the blank 70066cfa8f90fa9_5 fill in the blank 70066cfa8f90fa9_6 $fill in the blank 70066cfa8f90fa9_7 fill in the blank 70066cfa8f90fa9_9 Adjusted balance $fill in the blank 70066cfa8f90fa9_10 Cash balance according to company's records $fill in the blank 70066cfa8f90fa9_11 fill in the blank 70066cfa8f90fa9_13 $fill in the blank 70066cfa8f90fa9_14 $fill in the blank 70066cfa8f90fa9_16 fill in the blank 70066cfa8f90fa9_18 fill in the blank 70066cfa8f90fa9_20 fill in the blank 70066cfa8f90fa9_21 Adjusted balance $fill in the blank 70066cfa8f90fa9_22 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 fill in the blank 3e1de8fc7f9d025_2 fill in the blank 3e1de8fc7f9d025_3 fill in the blank 3e1de8fc7f9d025_5 fill in the blank 3e1de8fc7f9d025_6 fill in the blank 3e1de8fc7f9d025_8 fill in the blank 3e1de8fc7f9d025_9 b. May 31 fill in the blank 3e1de8fc7f9d025_11 fill in the blank 3e1de8fc7f9d025_12 fill in the blank 3e1de8fc7f9d025_14 fill in the blank 3e1de8fc7f9d025_15 fill in the blank 3e1de8fc7f9d025_17 fill in the blank 3e1de8fc7f9d025_18 fill in the blank 3e1de8fc7f9d025_20 fill in the blank 3e1de8fc7f9d025_21 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $fill in the blank 6f8e39fe8f9e06c_1

Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,170. During May, the total cash deposited was $71,700 and checks written totaled $66,570. The bank statement indicated a balance of $24,310 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 $10,830. A deposit of $8,820, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,660 on a note left for collection. The face of the note was $4,300. 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 $40. A check for $1,080 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 $fill in the blank 70066cfa8f90fa9_1 $fill in the blank 70066cfa8f90fa9_3 fill in the blank 70066cfa8f90fa9_5 fill in the blank 70066cfa8f90fa9_6 $fill in the blank 70066cfa8f90fa9_7 fill in the blank 70066cfa8f90fa9_9 Adjusted balance $fill in the blank 70066cfa8f90fa9_10 Cash balance according to company's records $fill in the blank 70066cfa8f90fa9_11 fill in the blank 70066cfa8f90fa9_13 $fill in the blank 70066cfa8f90fa9_14 $fill in the blank 70066cfa8f90fa9_16 fill in the blank 70066cfa8f90fa9_18 fill in the blank 70066cfa8f90fa9_20 fill in the blank 70066cfa8f90fa9_21 Adjusted balance $fill in the blank 70066cfa8f90fa9_22 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 fill in the blank 3e1de8fc7f9d025_2 fill in the blank 3e1de8fc7f9d025_3 fill in the blank 3e1de8fc7f9d025_5 fill in the blank 3e1de8fc7f9d025_6 fill in the blank 3e1de8fc7f9d025_8 fill in the blank 3e1de8fc7f9d025_9 b. May 31 fill in the blank 3e1de8fc7f9d025_11 fill in the blank 3e1de8fc7f9d025_12 fill in the blank 3e1de8fc7f9d025_14 fill in the blank 3e1de8fc7f9d025_15 fill in the blank 3e1de8fc7f9d025_17 fill in the blank 3e1de8fc7f9d025_18 fill in the blank 3e1de8fc7f9d025_20 fill in the blank 3e1de8fc7f9d025_21 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $fill in the blank 6f8e39fe8f9e06c_1

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

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Bank Reconciliation and Entries

The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,170. During May, the total cash deposited was $71,700 and checks written totaled $66,570. The bank statement indicated a balance of $24,310 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 $10,830.
A deposit of $8,820, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,660 on a note left for collection. The face of the note was $4,300.
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 $40.
A check for $1,080 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		$fill in the blank 70066cfa8f90fa9_1
	$fill in the blank 70066cfa8f90fa9_3
	fill in the blank 70066cfa8f90fa9_5	fill in the blank 70066cfa8f90fa9_6
		$fill in the blank 70066cfa8f90fa9_7
		fill in the blank 70066cfa8f90fa9_9
Adjusted balance		$fill in the blank 70066cfa8f90fa9_10
Cash balance according to company's records		$fill in the blank 70066cfa8f90fa9_11
		fill in the blank 70066cfa8f90fa9_13
		$fill in the blank 70066cfa8f90fa9_14
	$fill in the blank 70066cfa8f90fa9_16
	fill in the blank 70066cfa8f90fa9_18
	fill in the blank 70066cfa8f90fa9_20	fill in the blank 70066cfa8f90fa9_21
Adjusted balance		$fill in the blank 70066cfa8f90fa9_22

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	fill in the blank 3e1de8fc7f9d025_2	fill in the blank 3e1de8fc7f9d025_3
	fill in the blank 3e1de8fc7f9d025_5	fill in the blank 3e1de8fc7f9d025_6
	fill in the blank 3e1de8fc7f9d025_8	fill in the blank 3e1de8fc7f9d025_9
b. May 31	fill in the blank 3e1de8fc7f9d025_11	fill in the blank 3e1de8fc7f9d025_12
	fill in the blank 3e1de8fc7f9d025_14	fill in the blank 3e1de8fc7f9d025_15
	fill in the blank 3e1de8fc7f9d025_17	fill in the blank 3e1de8fc7f9d025_18
	fill in the blank 3e1de8fc7f9d025_20	fill in the blank 3e1de8fc7f9d025_21

3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
$fill in the blank 6f8e39fe8f9e06c_1

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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