Question 1:Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Deduct:” or “Add:” will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter all amounts as positive numbers. BRENTWOOD BIKE CO.Bank Reconciliation 1Cash balance according to bank statement 2 3 4 5Adjusted balance 6 7Cash balance according to company’s records 8 9 10 11 12Adjusted balance Question 2:Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. journals will automatically indent a credit entry when a credit amount is entered.JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 Question 3: If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $_________________ Info Needed to solve: 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. Required:1.Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Deduct:” or “Add:” will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter all amounts as positive numbers.2.Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.3.If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? 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 Labels and Amount Descriptions Labels For the Month Ended May 31 May 31 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

Question

Question 1:Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Deduct:” or “Add:” will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter all amounts as positive numbers. BRENTWOOD BIKE CO.Bank Reconciliation 1Cash balance according to bank statement  2   3   4   5Adjusted balance  6   7Cash balance according to company’s records  8   9   10   11   12Adjusted balance   Question 2:Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. journals will automatically indent a credit entry when a credit amount is entered.JOURNALACCOUNTING EQUATION  DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1        2        3        4        5        6        7            Question 3:  If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $_________________ Info Needed to solve: 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.  Required:1.Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Deduct:” or “Add:” will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter all amounts as positive numbers.2.Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.3.If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?   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  Labels and Amount Descriptions Labels For the Month Ended May 31 May 31 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

Accepted Answer

Analysis and adjustment of differences between the cash balance shown on a bank statement, and the…

1	Cash balance according to bank statement
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3
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5	Adjusted balance
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7	Cash balance according to company’s records
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12	Adjusted balance

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.

	Required:
1.	Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Deduct:” or “Add:” will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter all amounts as positive numbers.
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
3.	If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

Labels
For the Month Ended May 31
May 31
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

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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