Question

Only need help with Question 2

Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,600. During May, the total cash deposited was $73,740 and checks written totaled $68,470. The bank statement indicated a balance of $25,000 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 $11,130. b. A deposit of $9,070, 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. $4,790 on a note left for collection. The face of the note was $4,420. d. A check for $360 returned with the statement had been incorrectly charged by the bank as $630. 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 $70. g. A check for $1,110 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 $ 25,000 $ 9,070 Add bank error in charging check as $630 instead of $360 270 9,340 $ 34,340 11,130 Deduct outstanding checks Adjusted balance $ 23,210 Cash balance according to company's records Add note and interest collected by bank $ 19,870 4,790 $ 24,660 Deduct check returned because of insufficient funds $ 1,110 → Deduct bank service charges Deduct error in recording check 270 1,450 $ 23,210 Adjusted balance

Answer 1

b.	Accounts payable - Adkins Co.	270
	Accounts Receivable - Jennings Co.	1110
	Miscellaneous Expense	70
	Cash		1450

Part (a) of Question 2 is correct.