4j 8The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,270. During May, the total cash deposited was $66,780 and checks written totaled $62,010. The bank statement indicated a balance of $22,640 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $10,080.

A deposit of $8,210, representing receipts of May 31 had been made too late to appear on the bank statement.

The bank had collected for Brentwood Bike Co. $4,340 on a note left for collection. The face of the note was $4,010.

A check for $580 returned with the statement had been incorrectly charged by the bank as $850.

A check for $410 returned with the statement had been recorded by Brentwood Bike Co. as $140. The check was for the payment of an obligation to Adkins Co. on account.

Bank service charges for May amounted to $70.

A check for $1,000 from Jennings Co. was returned by the bank due to insufficient funds.

Instructions:

Question Content Area

1. Prepare a bank reconciliation as of May 31.

Brentwood Bike Co. Bank Reconciliation May 31

Cash balance according to bank statement		$fill in the blank 058fc9f71f85ff4_1
Add bank service charges Add deposit of May 31, not recorded by bank Add error in recording check Add outstanding checks Add note and interest collected by bank	$- Select -
Add bank error in charging check as $850 instead of $580 Add bank service charges Add check returned because of insufficient funds Add note and interest collected by bank Deduct error in recording check	- Select -	- Select -
Deduct bank service charges Deduct check returned because of insufficient funds Deduct deposit of May 31, not recorded by bank Deduct outstanding checks Deduct note and interest collected by bank		- Select -
Adjusted balance		$fill in the blank 058fc9f71f85ff4_9
Cash balance according to company's records		$fill in the blank 058fc9f71f85ff4_10
Add bank error in charging check as $850 instead of $580 Add bank service charge Add check returned because of insufficient funds Add deposit of May 31, not recorded by bank Add note and interest collected by bank		- Select -
Deduct bank error in charging check as $850 instead of $580 Deduct check returned because of insufficient funds Deduct deposit of May 31, not recorded by bank Deduct outstanding checks Deduct note and interest collected by bank	$- Select -
Deduct bank error in charging check as $850 instead of $580 Deduct bank service charges Deduct deposit of May 31, not recorded by bank Deduct outstanding checks Deduct note and interest collected by bank	- Select -
Deduct bank error in charging check as $850 instead of $580 Deduct deposit of May 31, not recorded by bank Deduct error in recording check Deduct outstanding checks Deduct note and interest collected by bank	- Select -	- Select -
Adjusted balance		$fill in the blank 058fc9f71f85ff4_20

Question Content Area

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

a. May 31	Cash Cash Short and Over interest Revenue Notes Receivable Petty Cash	- Select -	- Select -
	Cash Interest Payable Interest Receivable Notes Receivable Petty Cash	- Select -	- Select -
	Cash Interest Revenue Petty Cash Sales Unearned Interest	- Select -	- Select -
b. May 31	Accounts Payable-Adkins Co.Accounts Receivable-Adkins Co .Cash Short and Over Interest Revenue Notes Receivable	- Select -	- Select -
	Accounts Payable- Jennings Co .Accounts Receivable-Jennings Co. Interest Expense Interest Revenue Petty Cash	- Select -	- Select -
	Cash Interest Expense Miscellaneous Expense Notes Payable Notes Receivable	- Select -	- Select -
	Accounts Payable-Adkins .Accounts Receivable-Jennings Cash Miscellaneous Expense Notes Receivable	- Select -	- Select -

Question Content Area

3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $fill in the blank