1. Bank Reconciliation and Entries

   The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $13,810. During October, the total cash deposited was $68,760 and checks written totaled $63,840. The bank statement indicated a balance of $23,310 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

   1. Checks outstanding totaled $10,380.
   2. A deposit of $8,460, representing receipts of October 31 had been made too late to appear on the bank statement.
   3. The bank had collected for Coastal Bike Co. $4,470 on a note left for collection. The face of the note was $4,130.
   4. A check for $490 returned with the statement had been incorrectly charged by the bank as $940.
   5. A check for $520 returned with the statement had been recorded by Coastal Bike Co. as $250. The check was for the payment of an obligation to Rack Pro Co. on account.
   6. Bank service charges for October amounted to $60.
   7. A check for $1,030 from Bay View Condos was returned by the bank due to insufficient funds.

   Instructions:

   1. Prepare a bank reconciliation as of October 31, 20Y9.

   Coastal Bike Co. Bank Reconciliation October 31, 20Y9

   Cash balance according to bank statement		$fill in the blank ad9f7609b01b00a_1
   Adjustments:
   Bank service chargesDeposit of October 31, not recorded by bankError in recording checkOutstanding checksProceeds of note collected by bank, including $340 interest	$- Select -
   Bank error in charging check as $940 instead of $490Bank service chargesCheck returned because of insufficient fundsError in recording checkProceeds of note collected by bank, including $340 interest	- Select -
   Bank service chargesCheck returned because of insufficient fundsDeposit of October 31, not recorded by bankOutstanding checksProceeds of note collected by bank, including $340 interest	- Select -
   Total adjustments		fill in the blank ad9f7609b01b00a_8
   Adjusted balance		$fill in the blank ad9f7609b01b00a_9
   Cash balance according to company's records		$fill in the blank ad9f7609b01b00a_10
   Adjustments:
   Bank error in charging check as $940 instead of $490Bank service chargesCheck returned because of insufficient fundsDeposit of October 31, not recorded by bankProceeds of note collected by bank, including $340 interest	$- Select -
   Bank error in charging check as $940 instead of $490Check returned because of insufficient fundsDeposit of October 31, not recorded by bankOutstanding checksProceeds of note collected by bank, including $340 interest	- Select -
   Bank error in charging check as $940 instead of $490Bank service chargesDeposit of October 31, not recorded by bankOutstanding checksProceeds of note collected by bank, including $340 interest	- Select -
   Bank error in charging check as $940 instead of $490Deposit of October 31, not recorded by bankError in recording checkOutstanding checksProceeds of note collected by bank, including $340 interest	- Select -
   Total adjustments		fill in the blank ad9f7609b01b00a_19
   Adjusted balance		$fill in the blank ad9f7609b01b00a_20

   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. 20Y9 Oct. 31	CashCash Short or OverInterest RevenueNotes ReceivablePetty Cash	- Select -	- Select -
   	CashInterest ReceivableInterest PayableNotes ReceivablePetty Cash	- Select -	- Select -
   	CashInterest RevenuePetty CashUnearned InterestSales	- Select -	- Select -
   b. Oct. 31	Accounts Receivable-Rack Pro Co.Accounts Payable-Rack Pro Co.Cash Short or OverInterest RevenueNotes Receivable	- Select -	- Select -
   	Accounts Payable-Bay View CondosAccounts Receivable-Bay View CondosPetty CashInterest ExpenseInterest Revenue	- Select -	- Select -
   	CashInterest ExpenseMiscellaneous ExpenseNotes PayableNotes Receivable	- Select -	- Select -
   	Accounts Payable-Rack Pro Co.Accounts Receivable-Bay View CondosCashMiscellaneous ExpenseNotes Receivable	- Select -	- Select -

   3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash? $fill in the blank 3342cb063047f9b_1

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