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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,090. During May, the total cash deposited was $65,010 and checks written totaled $60,360. The bank statement indicated a balance of $22,040 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 $9,820. A deposit of $8,000, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,230 on a note left for collection. The face of the note was $3,900. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. Bank service charges for May amounted to $50. A check for $980 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 d09836015fb6fcd_1   $fill in the blank d09836015fb6fcd_3     fill in the blank d09836015fb6fcd_5 fill in the blank d09836015fb6fcd_6     $fill in the blank d09836015fb6fcd_7     fill in the blank d09836015fb6fcd_9 Adjusted balance   $fill in the blank d09836015fb6fcd_10 Cash balance according to company's records   $fill in the blank d09836015fb6fcd_11     fill in the blank d09836015fb6fcd_13     $fill in the blank d09836015fb6fcd_14   $fill in the blank d09836015fb6fcd_16     fill in the blank d09836015fb6fcd_18     fill in the blank d09836015fb6fcd_20 fill in the blank d09836015fb6fcd_21 Adjusted balance   $fill in the blank d09836015fb6fcd_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 0889a5041fbbfae_2 fill in the blank 0889a5041fbbfae_3     fill in the blank 0889a5041fbbfae_5 fill in the blank 0889a5041fbbfae_6     fill in the blank 0889a5041fbbfae_8 fill in the blank 0889a5041fbbfae_9 b. May 31   fill in the blank 0889a5041fbbfae_11 fill in the blank 0889a5041fbbfae_12     fill in the blank 0889a5041fbbfae_14 fill in the blank 0889a5041fbbfae_15     fill in the blank 0889a5041fbbfae_17 fill in the blank 0889a5041fbbfae_18     fill in the blank 0889a5041fbbfae_20 fill in the blank 0889a5041fbbfae_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 eba8e1f41001fa1_1

The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,090. During May, the total cash deposited was $65,010 and checks written totaled $60,360. The bank statement indicated a balance of $22,040 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 $9,820. A deposit of $8,000, representing receipts of May 31, had been made too late to appear on the bank statement. The bank had collected for Brentwood Bike Co. $4,230 on a note left for collection. The face of the note was $3,900. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. Bank service charges for May amounted to $50. A check for $980 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 d09836015fb6fcd_1   $fill in the blank d09836015fb6fcd_3     fill in the blank d09836015fb6fcd_5 fill in the blank d09836015fb6fcd_6     $fill in the blank d09836015fb6fcd_7     fill in the blank d09836015fb6fcd_9 Adjusted balance   $fill in the blank d09836015fb6fcd_10 Cash balance according to company's records   $fill in the blank d09836015fb6fcd_11     fill in the blank d09836015fb6fcd_13     $fill in the blank d09836015fb6fcd_14   $fill in the blank d09836015fb6fcd_16     fill in the blank d09836015fb6fcd_18     fill in the blank d09836015fb6fcd_20 fill in the blank d09836015fb6fcd_21 Adjusted balance   $fill in the blank d09836015fb6fcd_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 0889a5041fbbfae_2 fill in the blank 0889a5041fbbfae_3     fill in the blank 0889a5041fbbfae_5 fill in the blank 0889a5041fbbfae_6     fill in the blank 0889a5041fbbfae_8 fill in the blank 0889a5041fbbfae_9 b. May 31   fill in the blank 0889a5041fbbfae_11 fill in the blank 0889a5041fbbfae_12     fill in the blank 0889a5041fbbfae_14 fill in the blank 0889a5041fbbfae_15     fill in the blank 0889a5041fbbfae_17 fill in the blank 0889a5041fbbfae_18     fill in the blank 0889a5041fbbfae_20 fill in the blank 0889a5041fbbfae_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 eba8e1f41001fa1_1

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
Problem 5PB
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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,090. During May, the total cash deposited was $65,010 and checks written totaled $60,360. The bank statement indicated a balance of $22,040 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

  1. Checks outstanding totaled $9,820.
  2. A deposit of $8,000, representing receipts of May 31, had been made too late to appear on the bank statement.
  3. The bank had collected for Brentwood Bike Co. $4,230 on a note left for collection. The face of the note was $3,900.
  4. A check for $490 returned with the statement had been incorrectly charged by the bank as $940.
  5. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account.
  6. Bank service charges for May amounted to $50.
  7. A check for $980 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 d09836015fb6fcd_1
  $fill in the blank d09836015fb6fcd_3  
  fill in the blank d09836015fb6fcd_5 fill in the blank d09836015fb6fcd_6
    $fill in the blank d09836015fb6fcd_7
    fill in the blank d09836015fb6fcd_9
Adjusted balance   $fill in the blank d09836015fb6fcd_10
Cash balance according to company's records   $fill in the blank d09836015fb6fcd_11
    fill in the blank d09836015fb6fcd_13
    $fill in the blank d09836015fb6fcd_14
  $fill in the blank d09836015fb6fcd_16  
  fill in the blank d09836015fb6fcd_18  
  fill in the blank d09836015fb6fcd_20 fill in the blank d09836015fb6fcd_21
Adjusted balance   $fill in the blank d09836015fb6fcd_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 0889a5041fbbfae_2 fill in the blank 0889a5041fbbfae_3
    fill in the blank 0889a5041fbbfae_5 fill in the blank 0889a5041fbbfae_6
    fill in the blank 0889a5041fbbfae_8 fill in the blank 0889a5041fbbfae_9
b. May 31   fill in the blank 0889a5041fbbfae_11 fill in the blank 0889a5041fbbfae_12
    fill in the blank 0889a5041fbbfae_14 fill in the blank 0889a5041fbbfae_15
    fill in the blank 0889a5041fbbfae_17 fill in the blank 0889a5041fbbfae_18
    fill in the blank 0889a5041fbbfae_20 fill in the blank 0889a5041fbbfae_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 eba8e1f41001fa1_1

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