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.

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Answered: The cash account for Brentwood Bike Co.…

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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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.

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