Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,000. During May, the total cash deposited was $64,620 and checks written totaled $60,000. The bank statement indicated a balance of $21,910 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 $9,760. b. A deposit of $7,950, 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. $4,200 on a note left for collection. The face of the note was $3,880. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. 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 $30. g. A check for $970 from Jennings Co. was returned by the bank due to insufficient funds. Instructions: Instructions: 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 Cash balance according to bank statement 21,910 Add deposit of May 31, not recorded by bank 7,950 Add bank error in charging check as $720 instead of $270 450 8,400 Deduct outstanding checks 9,760 Adjusted balance 20,550 13,000 Cash balance according to company's records Add note and interest collected by bank 4,200 Deduct bank error in charging check as $720 instead of $270 $ 270 Deduct bank service charges 30 Deduct error in recording check Adjusted balance 20,550 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. a. May 31 Cash 4,200 Notes Receivable Interest Revenue b. May 31 Accounts Payable-Adkins Co. Interest Expense Miscellaneous Expense Cash 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $