Chapters Four, Six and Eight eBook Show Me How Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,620. During May, the total cash deposited was $73,980 and checks written totaled $68,590. The bank statement indicated a balance of $25,080 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 $11,170. b. A deposit of $9,100, 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. $4,810 on a note left for collection. The face of the note was $4,440. d. A check for $360 returned with the statement had been incorrectly charged by the bank as $630. 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. 9. A check for $1,110 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 Add deposit of May 31, not recorded by bank 25,080 9,100 S Add bank error in charging check as $630 instead of $360 270 9,370 Deduct outstanding checks 11,170 Adjusted balance 23,280 Cash balance according to company's records 000 Adjusted balance Feedback 2. Joumalize 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 b. May 31 Check My Work Previous