ACG

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 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 $5,560.
B.	A deposit of $1,050 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. $2,120 on a note left for collection. The face of the note was $2,000.
D.	A check for $370 returned with the statement had been incorrectly charged by the bank as $730.
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 $25.
G.	A check for $880 from Bay View Condos was returned by the bank due to insufficient funds.

	Instructions
1.	Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2.	Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.
3.	If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?

CHART OF ACCOUNTS

Coastal 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
313	Income Summary

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise 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

Amount Descriptions:

Adjusted balance

Bank error in charging check as $370 instead of $730

Bank error in charging check as $730 instead of $370

Bank service charges

Check returned because of insufficient funds

Company error in recording note collected by bank

Deposit of October 31, not recorded by bank

Error in recording check

Outstanding checks

Proceeds of note collected by bank, including $120 interest

Total adjustments