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Jul and Enthes The cash account for Coastal Bike Co. at October 1, 2019, indicated a balance of $13,470. During October, the total cash
Jul and Enthes The cash account for Coastal Bike Co. at October 1, 2019, indicated a balance of $13,470. During October, the total cash deposited was $67,570 and checks written totaled $62,740. The bank statement indicated a balance of $22,910 on October 31, 2019, Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $10,200. b. A deposit of $8,310, 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. $4,390 on a note left for collection. The face of the note was $4,050. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. 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 $30. 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. Coastal Bike Co. Bank Reconciliation October 31, 2019 Cash balance according to bank statement Adjustments: Deposit of October 31, not recorded by bank Bank error in charging check as $720 instead of $270 Outstanding checks Total adjustments Adjusted balance 8,310 00
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