Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,370. During May, the total cash

image text in transcribedimage text in transcribed

Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,370. During May, the total cash deposited was $68,080 and checks written totaled $63,210. The bank statement indicated a balance of $23,080 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 $10,280. b. A deposit of $8,370, 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. $4,430 on a note left for collection. The face of the note was $4,080. d. A check for $360 returned with the statement had been incorrectly charged by the bank as $630. e. A check for $970 returned with the statement had been recorded by Brentwood Bike Co. as $790. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $30. g. A check for $1,020 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 $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting: A Business Process Approach

Authors: Jane L. Reimers

3rd edition

978-013611539, 136115276, 013611539X, 978-0136115274

More Books

Students also viewed these Accounting questions

Question

1. Let a, b R, a Answered: 1 week ago

Answered: 1 week ago

Question

Find the inverse, if it exists, for the matrix. -1

Answered: 1 week ago