Question

Bank Reconciliation and Entries. The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,640. During May, the total cash deposited was $73,180 and checks written totaled $67,950. The bank statement indicated a balance of $24,810 on May 31. Comparing the bank statement, the canceled checks, ans fhe accompaying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $11,050

2 matches shor De ories & Problems BLANKSH. ALGO eBook Show Me How Calculator Print Item Bank Reconciliation and Entries The cash account for Brentwood Co. at May 1 indicated a balance of $14,640. During May, the total cash deposited was $73,180 and checks written totaled $67,950. The bank statement indicated a balance of $24,810 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Check outstanding totaled $11,050. b. A deposit of $9,006, representing receipts of May 31, had been made too late to appear on the bank statement The bank had collected for Brentwood Bike Co. $4,760 on a note left for collection. The face of the note was $4,390. 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 9. A check for $1,100 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 Add deposit of May 31, not recorded by bank Add bank error in charging check as $720 instead of $270 1460 5.30 5. 20.30 11.09 Deduct outstanding checks Adjusted balance Cash balance according to company's records 220 Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b) that decrease cash. The accounts have not been closed. For a compound transaction of an amount box does not require an entry, leave it blank. a. May 31 b. May 31 Previous Check My Work 2 more Check My Work uses remaining 3: 5/5 items nent Score: 63 27% All work saved Email Instructor Save and Submit Assignment for Grading

Answer 1

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Naming convention list is not available, can be slightly different: Solution: 1) Bank Reconciliation Particulars Cash Balance according to Bank statement Add: Deposit of May 31, not recorded by bank Add: Bank error in charging check as $720 instead of $270 Deduct: outstanding checks Adjusted Balance Cash balance according to company's records (14640)+(73180) - (67950) Add: Note and Interest collected by bank Total $ 24,810 $ 9,000 $ 450 $ 9,450 $ 34,260 $ 11,050 $ 23,210 $ 19,870 $ 4,760 $ 24,630 $ 1,100 $ 270 $ 50 $ 1,420 $ 23,210 Deduct: Check returned because of insufficient funds (NSF) Deduct: Error in recording check (630-360) Deduct: Bank Service charges Adjusted Balance

2) Note: Ignore the explanation lines while putting answer in the JE Answer format as per question requirement. Jounal entries Credit Debit $ 4,760 $ 4,390 $ 370 Date Account title and explaination May.31 Cash Note Receivable Interest Revenue (To record the Increase in cash) May.31 Miscellaneous Expense Accounts Receivable-Jennings Co. Accounts Payable-Adkins Co. Cash (To record the Decrease in cash) $ 50 $ 1,100 $ 270 $ 1,420 3) $ 23,210 Cash should be reported as adjusted cash balance. (refer part 1)