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 $14,390. During May, the total cash deposited

image text in transcribed
image text in transcribed
image text in transcribed
Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,390. During May, the total cash deposited was $72,930 and checks written totaled $67,720. The bank statement indicated a balance of $24,720 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 $11,010. b. A deposit of $8,970, 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. $4,740 on a note left for collection. The face of the note was $4,380. d. A check for $580 returned with the statement had been incorrectly charged by the bank as $850. e. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $30. 9. A check for $1,090 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 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 DODI), I Cash balance according to company's records Adjusted balance de prem Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been dosed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. May 31 b. May 31 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash

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 And Reporting

Authors: Barry Elliott, Jamie Elliott

20th Edition

1292399805, 978-1292399805

More Books

Students also viewed these Accounting questions

Question

What attracts you to our graduate program specifically?

Answered: 1 week ago

Question

What is the purpose of a customized benefits plan?

Answered: 1 week ago

Question

What are topics included within employee services?

Answered: 1 week ago