Instructions Chart of Accounts Labels and Amount Descriptions Bank Reconciliation Journal Instructions The cash account for Brentwood Bike Co. at May 1 indicated a balance of $36,016. During May, the total cash deposited was $138,000, and checks written totaled $138,571. The bank statement indicated a balance of $43.940 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 $6,281, b. A deposit of $1,796 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. $5,670 on a note left for collection. The face of the note was $5,400. d. A check for $570 returned with the statement had been incorrectly charged by the bank as $750. e. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account f. Bank service charges for May amounted to $20 g. A check for $1,394 from Jennings Co. was returned by the bank due to insufficient funds Required: 1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. "Deduct" or "Add" will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions Enter all amounts as positive numbers 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? ASSETS 110 Cash 111 Petty Cash CHART OF ACCOUNTS 112 Accounts Receivable-Jennings Co. 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies Brentwood Bike Co. General Ledger REVENUE 410 Sales 610 Interest Revenue 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 211 Accounts Payable-Adkins Co 221 Notes Payable 222 Interest Payable 231 Salaries Payable 348 Falan To Obin EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Seling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 110 Internet Canance Previous Next 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 211 Accounts Payable-Adkins Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Bank reconciliation and entries Instructions Chart of Accounts Labels and Amount Descriptions Bank Reconciliation Labels and Amount Descriptions Labels For the Month Ended May 31 May 31 Amount Descriptions Bank error in charging check as $570 instead of $750 Bank error in charging check as $750 instead of $570 Bank service charges Check returned because of insufficient funds Company error in recording note collected by bank Deposit of May 31, not recorded by bank Error in recording check Outstanding checks Note and interest collected by bank V 1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. "Deduct" or "Add" will automatically appear if it is required. Whenever there is more than one adjusting them in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter all amounts as positive numbers. 1 Cash balance according to bank statement 2 1 S " " Adjusted balance Cash balance according to company's records 11 12 Adjusted balance BRENTWOOD BIKE CO. Bank Reconciliation (Label) Bank reconciliation and entries Instructions Chart of Accounts Labels and Amount Descriptions Bank Reconciliation Journal Journal 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered 3 DATE DESCRIPTION PAGE JOURNAL ACCOUNTING EQUATION POST REF DET CREDIT ASSETS LABILITIES EQUITY Bank reconciliation and entries Instructions Chart of Accounts Labels and Amount Descriptions Bank Reconciliation Journal Final Question 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? S