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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,500 and checks written totaled $59,890. The bank statement indicated a balance of $21,870 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 $9,740. b. A deposit of $7,930, 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 $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. f. Bank service charges for May amounted to $30. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions:

The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,500 and checks written totaled $59,890. The bank statement indicated a balance of $21,870 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 $9,740. b. A deposit of $7,930, 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 $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. f. Bank service charges for May amounted to $30. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions:

College Accounting (Book Only): A Career Approach
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 $12,980. During May, the total cash deposited was $64,500 and checks written totaled $59,890. The bank statement indicated a balance of $21,870 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 $9,740. b. A deposit of $7,930, 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 $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. f. Bank service charges for May amounted to $30. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions:
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 $64,500 and checks written totaled $59,890. The bank statement indicated a balance of $21,870 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 $9,740. b. A deposit of $7,930, 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 $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. f. Bank service charges for May amounted to $30. g. A check for $970 from Jennings Co. was returned by the bank because of insufficient funds. Instructions:
n/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How 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 v Notes Receivable Interest Revenue v b. May 31 Accounts Payable-Adkins Co. / Accounts Receivable-Jennings Co. V Miscellaneous Expense v Cash v Feedback TCheck My Work 2. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. Debit memo items like bank service charges decrease Cash. Items that come from credit memos like collections of notes or interest by the bank increase cash. If the company made an error that overstates or understates cash in the company section, the journal adjustment would decrease Cash or increase Cash, respectively 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Check My Work Previous All work saved. Save and Exit Submit Assignment for Grading 7:51 PM 3/17/2021
Transcribed Image Text:n/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How 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 v Notes Receivable Interest Revenue v b. May 31 Accounts Payable-Adkins Co. / Accounts Receivable-Jennings Co. V Miscellaneous Expense v Cash v Feedback TCheck My Work 2. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. Debit memo items like bank service charges decrease Cash. Items that come from credit memos like collections of notes or interest by the bank increase cash. If the company made an error that overstates or understates cash in the company section, the journal adjustment would decrease Cash or increase Cash, respectively 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Check My Work Previous All work saved. Save and Exit Submit Assignment for Grading 7:51 PM 3/17/2021
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