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The cash account for Brentwood Bike Co, at May 1 indicated a balance of $14,630. During May, the total cash deposited was $73,040 and checks written totaled $67,820. The bank statement indicated a balance of $24,760 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 $11,030. b. A deposit of $8,980, 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. $4,750 on a note left for collection. The face of the note was $4,380. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. 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 $1,100 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 Adjusted balance Cash balance according to company's records Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been dosed. For a compound transaction, if an amount box does not require an entry, leave it blank. A Mav 31C (Previous

The cash account for Brentwood Bike Co, at May 1 indicated a balance of $14,630. During May, the total cash deposited was $73,040 and checks written totaled $67,820. The bank statement indicated a balance of $24,760 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 $11,030. b. A deposit of $8,980, 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. $4,750 on a note left for collection. The face of the note was $4,380. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. 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 $1,100 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 Adjusted balance Cash balance according to company's records Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been dosed. For a compound transaction, if an amount box does not require an entry, leave it blank. A Mav 31C (Previous

Financial Accounting
Financial Accounting
14th Edition
ISBN:9781305088436
Author:Carl Warren, Jim Reeve, Jonathan Duchac
Publisher:Carl Warren, Jim Reeve, Jonathan Duchac
Chapter8: Sarbanes-oxley, Internal Control, And Cash
Section: Chapter Questions
Problem 18E
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mentSéssionLocator=&inprogress-false Update I eBook Show Me How Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,630. During May, the total cash deposited was $73,040 and checks written totaled $67,820. The bank statement indicated a balance of $24,760 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 $11,030. b. A deposit of $8,980, 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. $4,750 on a note left for collection. The face of the note was $4,380. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation f. Bank service charges for May amounted to $70. g. A check for $1,100 from Jennings Co. was returned by the bank because of insufficient funds. Adkins Co. on account. Instructions: 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 Cash balance according to bank statement Adjusted balance Cash balance according to company's records 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, if an amount box does not require an entry, leave it blank. (Previous Check My Work Save and Exit Submit Assignment for Grading 3:18 PM O 81°F Partly sunny 11/1/2021 acer
Transcribed Image Text:mentSéssionLocator=&inprogress-false Update I eBook Show Me How Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,630. During May, the total cash deposited was $73,040 and checks written totaled $67,820. The bank statement indicated a balance of $24,760 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 $11,030. b. A deposit of $8,980, 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. $4,750 on a note left for collection. The face of the note was $4,380. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation f. Bank service charges for May amounted to $70. g. A check for $1,100 from Jennings Co. was returned by the bank because of insufficient funds. Adkins Co. on account. Instructions: 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 Cash balance according to bank statement Adjusted balance Cash balance according to company's records 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, if an amount box does not require an entry, leave it blank. (Previous Check My Work Save and Exit Submit Assignment for Grading 3:18 PM O 81°F Partly sunny 11/1/2021 acer
=Stinprogress=false eBook Show Me How Updam 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, if an amount box does not require an entry, leave it blank. a. May 31 b. May 31 Feedback Check My Work 2. Keep in mind that the company needs to journalize any adjusting tems in the company section of the bank reconciliation, because these have riot b from credit memos like collections of notes or interest by the bank increase cash It the company made an error that overstates or understates cashi n previously recorded by the company. Debit memo items like bank service charges decrease Cash. Items that come section the journal adjustment would decrease Cash or increase Cash, respectively 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Feedback Check My Work 3. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation Previous Check My Work Save and Exit Submit Assignment for Grading 319 PM S 81'F Partly sunny a a 11/3/2021 earch aer
Transcribed Image Text:=Stinprogress=false eBook Show Me How Updam 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, if an amount box does not require an entry, leave it blank. a. May 31 b. May 31 Feedback Check My Work 2. Keep in mind that the company needs to journalize any adjusting tems in the company section of the bank reconciliation, because these have riot b from credit memos like collections of notes or interest by the bank increase cash It the company made an error that overstates or understates cashi n previously recorded by the company. Debit memo items like bank service charges decrease Cash. Items that come section the journal adjustment would decrease Cash or increase Cash, respectively 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Feedback Check My Work 3. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation Previous Check My Work Save and Exit Submit Assignment for Grading 319 PM S 81'F Partly sunny a a 11/3/2021 earch aer
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