Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,180. During May, the total cash deposited was $70,750 and checks written totaled $65,690. The bank statement indicated a balance of $23,980 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 $10,680. b. A deposit of $8,700, 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. $4,600 on a note left for collection. The face of the note was $4,250. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. 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 $60. g. A check for $1,060 from Jennings Co. was returned by the bank due to 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 Adjusted balance Cash balance according to company's records Adjusted balance 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 III III 101 110 b. May 31 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $