The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,800. During May, the total cash deposited was $139,523, and checks written totaled $138,774. The bank statement indicated a balance of $43,875 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 $6,340.B.A deposit of $1,643 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. $5,565 on a note left for collection. The face of the note was $5,300.D.A check for $260 returned with the statement had been incorrectly charged by the bank as $620.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 $22.G.A check for $1,464 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 $260 instead of $620 Bank error in charging check as $620 instead of $260 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 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. 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. BRENTWOOD BIKE CO.Bank ReconciliationMay 311Cash balance according to bank statement 2 3 4 5 6Adjusted balance 7 8Cash balance according to company’s records 9 10 11 12 13 14Adjusted balance Journal 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1 JOURNALACCOUNTING EQUATION DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1 2 3 4 5 6 7 Final Question 3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

Question

The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,800. During May, the total cash deposited was $139,523, and checks written totaled $138,774. The bank statement indicated a balance of $43,875 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 $6,340.B.A deposit of $1,643 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. $5,565 on a note left for collection. The face of the note was $5,300.D.A check for $260 returned with the statement had been incorrectly charged by the bank as $620.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 $22.G.A check for $1,464 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 $260 instead of $620 Bank error in charging check as $620 instead of $260 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  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. 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. BRENTWOOD BIKE CO.Bank ReconciliationMay 311Cash balance according to bank statement  2   3   4   5   6Adjusted balance  7   8Cash balance according to company’s records  9   10   11   12   13   14Adjusted balance      Journal  2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.PAGE 1 JOURNALACCOUNTING EQUATION  DATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1        2        3        4        5        6        7            Final Question  3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

Accepted Answer

Bank Reconciliation

Balance as per Bank Statement
43,875

Add: Deposited but not recorded by…

A.	Checks outstanding totaled $6,340.
B.	A deposit of $1,643 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. $5,565 on a note left for collection. The face of the note was $5,300.
D.	A check for $260 returned with the statement had been incorrectly charged by the bank as $620.
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 $22.
G.	A check for $1,464 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 balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

Amount Descriptions
Bank error in charging check as $260 instead of $620
Bank error in charging check as $620 instead of $260
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

1	Cash balance according to bank statement
2
3
4
5
6	Adjusted balance
7
8	Cash balance according to company’s records
9
10
11
12
13
14	Adjusted balance

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
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2
3
4
5
6
7