Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,510. During May, the total cash deposited was $72,360 and checks written totaled $67,190. The bank statement indicated a balance of $24,530 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 $10,930. b. A deposit of $8,900, 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. $4,700 on a note left for collection. The face of the was $4,340 d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. e. A check for $630 returned with the statement had been recorded by Brentwood Bike Co. as $360. 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 $1,090 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 24,530 Cash balance according to bank statement Add deposit of May 31, not recorded by bank 8.900 Add bank error in charging check as 5940 instead of $490 450 9,350 33,880 Deduct outstanding checks 10 90 33 ERO Deduct outstanding checks 10.930 Adjusted balance 22.950 19,680 Cash balance according to company's records Add note and interest collected by bank 4.700 24.380 Deduct deposit of May 31, not recorded by bank x Deduct bank service charges Deduct error in recording check 1.090 14130 221950 Adjusted balance Feedback 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 Cash 4,700 Notes Receivable 4.340 Interest Revenue 360 b. May 31 Accounts Payable Adkins Co. 270 Dette Cach 33,880 Deduct outstanding checks 10.930 Adjusted balance 22,950 Cash balance according to company's records Add note and interest collected by bank 19,680 4.700 24.380 Deduct deposit of May 31, not recorded by bank 1090 Deduct bank error in charging check as 5940 instead of $490 Deduct check returned because of insufficient funds Deduct deposit of May 31, not recorded by bank Deduct outstanding checks Deduct note and interest collected by bank 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 Cash Notes Receivable Interest Revenue b. May 31 Accounts Payable Adkins Co. 270 Deduct error in recording check 1.430 Adjusted balance 22,950 Feedback 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 Cash 4,700 Notes Receivable 4.340 Interest Revenue 360 b. May 31 Accounts Payable-Adkins Co. Petty Cash x Miscellaneous Expense 1.090 Cash 1,430 Feedback 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $ 22,950 Deduct error in recording check 1,090 X 1.430 Adjusted balance 22,950 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 Cash 4,700 Notes Receivable Interest Revenue b. May 31 Accounts Payable Adkins Co Pett. Cash x Accounts Payable-Jennings Co. Accounts Receivable-Jennings Co. Interest Expense Interest Revenue Petty Cash Brentwood Bike Co. on May 31, what amount should be reported as $ 22,950