Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Bank Reconciliation and Entries The cash account for Coastal Bike Co. at October 1, 2009, indicated a balance of $13,190. During October, the total cash
Bank Reconciliation and Entries The cash account for Coastal Bike Co. at October 1, 2009, indicated a balance of $13,190. During October, the total cash deposited was 557,000 and checks written totaled $62,210. The bank statement indicated a balance of $22,710 on October 31, 2019. Comparing the bank statement, the canceled checks, and the accompanying memes with the records revealed the following reconciling items: a. Checks outstanding totaled $10,120. b. A deposit of $8,240, representing receipts of October 31 had been made too late to appear on the bank statement C. The bank had collected for Coastal Bike Co. $4,360 on a note left for collection. The face of the note was $4,020 d. A check for $580 returned with the statement had been incorrectly charged by the bank as $850. e. A check for $970 returned with the statement had been recorded by Coastal Bike Co. as $790. The check was for the payment of an obligation to Rack Pro Co on account. f. Bank service charges for October amounted to $50. 9. A check for $1,010 from Bay View Condos was returned by the bank due to insufficient funds. Instructions: 1. Prepare a bank reconciliation as of October 31, 2019 1. Prepare a bank reconciliation as of October 31, 2019. Coastal Bike Co. Bank Reconciliation October 31, 2049 Cash balance according to bank statement Adjustments Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Total adjustments Adjusted balance 2. Jourite the necessary entries (a) that increase cash and (b) that decrease cash. The accounts have not been closed. For a compound transaction, an amount box does not require an entry, leave blank a. 2079 Oct. 31 b. Oct. 31 3. If a balance sheet were prepared for Castle Co. on October 31, 2019, what amount should be reported as cash
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started