Bank Reconciliation and Entries

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $14,140. During October, the total cash deposited was $71,520 and checks written totaled $66,410. The bank statement indicated a balance of $24,250 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $10,800.

A deposit of $8,800, representing receipts of October 31 had been made too late to appear on the bank statement.

The bank had collected for Coastal Bike Co. $4,650 on a note left for collection. The face of the note was $4,290.

A check for $580 returned with the statement had been incorrectly charged by the bank as $850.

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.

Bank service charges for October amounted to $40.

A check for $1,070 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		$
Adjustments:
	$
Total adjustments
Adjusted balance		$
Cash balance according to company's records		$
Adjustments:
	$
Total adjustments
Adjusted balance		$