7 4 Bank Reconciliation has 14 entries General Journal has 7 entries CHART OF ACCOUNTSCoastal Bike Co General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable Bay View Condos 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation Store Equipment LIABILITIES 211 Accounts Payable Rack Pro Co 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Goods Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense Office Equipment 562 Depreciation Expense Store Equipment 590 Miscellaneous Expense 710 Interest Expense Labels For the Month Ended October 31, 20Y9 October 31, 20Y9 Amount Descriptions Adjusted balance Bank error in charging check as $740 instead of $470 Bank service charges Check returned because of insufficient funds Deposit in transit on October 31 Error in recording check Note collected by bank, including $275 interest Outstanding checks Total additions Total deductions The cash account for Coastal Bike Co at October 1, 20Y9, indicated a balance of $30,356 During October, the total cash deposited was $141,640, and checks written totaled $137,652 The bank statement indicated a balance of $43,000 on October 31, 20Y9 Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items a Checks outstanding totaled $6,515 b A deposit of $1,779 representing receipts of October 31 had been made too late to appear on the bank statement c The bank had collected for Coastal Bike Co $5,775 on a note left for collection The face of the note was $5,500 d A check for $470 returned with the statement had been incorrectly charged by the bank as $740 e A check for $310 returned with the statement had been recorded by Coastal Bike Co as $130 The check was for the payment of an obligation to Rack Pro Co on account f Bank service charges for October amounted to $29 g A check for $1,376 from Bay View Condos was returned by the bank due to insufficient funds Required 1 Prepare a bank reconciliation as of October 31, 20Y9 2 Journalize the necessary entries 3 If a balance sheet were prepared for Coastal Bike Co on October 31, 20Y9, what amount should be reported as cash

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7-4 Bank Reconciliation has 14 entries General Journal has 7 entries CHART OF ACCOUNTSCoastal Bike Co.General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts

7-4

Bank Reconciliation has 14 entries

General Journal has 7 entries

CHART OF ACCOUNTSCoastal Bike Co.General Ledger

	ASSETS
110	Cash
111	Petty Cash
112	Accounts Receivable-Bay View Condos
131	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
211	Accounts Payable-Rack Pro Co.
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Common Stock
311	Retained Earnings
312	Dividends

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Goods Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense

Labels
For the Month Ended October 31, 20Y9
October 31, 20Y9
Amount Descriptions
Adjusted balance
Bank error in charging check as $740 instead of $470
Bank service charges
Check returned because of insufficient funds
Deposit in transit on October 31
Error in recording check
Note collected by bank, including $275 interest
Outstanding checks
Total additions
Total deductions

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $30,356. During October, the total cash deposited was $141,640, and checks written totaled $137,652. The bank statement indicated a balance of $43,000 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a.	Checks outstanding totaled $6,515.
b.	A deposit of $1,779 representing receipts of October 31 had been made too late to appear on the bank statement.
c.	The bank had collected for Coastal Bike Co. $5,775 on a note left for collection. The face of the note was $5,500.
d.	A check for $470 returned with the statement had been incorrectly charged by the bank as $740.
e.	A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account.
f.	Bank service charges for October amounted to $29.
g.	A check for $1,376 from Bay View Condos was returned by the bank due to insufficient funds.

	Required:
1.	Prepare a bank reconciliation as of October 31, 20Y9.
2.	Journalize the necessary entries.
3.	If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?