Bank Reconciliation and Entries

The cash account for Brentwood Bike Co$.$ at May $1$ indicated a balance of $$14,670.$ During May, the total cash deposited was $$74,260$ and checks written totaled $$68,950.$ The bank statement indicated a balance of $$25,170$ 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 $$11,210.$

b$.$ A deposit of $$9,130,$ 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$.$ $$4,830$ on a note left for collection. The face of the note was $$4,460.$

d$.$ A check for $$360$ returned with the statement had been incorrectly charged by the bank as $$630.$

e$.$ 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.

f$.$ Bank service charges for May amounted to $$70.$

g$.$ A check for $$1,110$ from Jennings Co$.$ was returned by the bank because of insufficient funds.

Instructions:

Prepare a bank reconciliation as of May $31.$

Brentwood Bike Co$.$

Bank Reconciliation

May $31$

Cash balance according to bank statement

Add deposit of May $31,$ not recorded by bank $*$

Add bank error in charging check as $$630$ instead of $$360$

Deduct outstanding checks $$

Adjusted balance

Cash balance according to company's records

Add note and interest collected by bank $$

Deduct check returned because of insufficient funds $$

Deduct bank service charges grad$$

Deduct error in recording check $$

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 $31$

Notes Receivable $$

$

Adjusted balance

b$.$ May $31$

Accounts Payable$-$Adkins Co$.$

Accounts Receivable$-$Jennings Co$,$ not$$

Miscellaneous Expense $$

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

$

$x$