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Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,020. During May, the total cash deposited was $64,530 and checks written totaled $59,920. The bank statement indicated a balance of $21,880 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 $9,740. b. A deposit of $7,940, 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. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. 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 $50. g. A check for $970 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 Add deposit of May 31, not recorded by bank Add bank error in charging check as $940 instead of $490 Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank 00000000 00 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 Adjusted balance b. May 31 Feedback Check My Work 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?