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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks

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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 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 $6,440. B. A deposit of $1,850 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. $5,250 on a note left for collection. The face of the note was $5,000. D. A check for $390 returned with the statement had been incorrectly charged by the bank as $930. 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 $30. G. A check for $1,325 from Jennings Co. was returned by the bank due to insufficient funds. Instructions 1. Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct:" or "Add" will automatically appear if it is required. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? CHARTS OF ACCOUNTS: CHART OF ACCOUNTS Brentwood Bike Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 10 Interest Revenue 112 Accounts Receivable-Jennings Co. EXPENSES 131 Notes Receivable 141 Merchandise Inventory $10|Cost of Merchandise Sold 145 Office Supplies S15 Credit Card Expense 146 Store Supplies $16|Cash Short and Over 151 Prepaid Insurance $20 Salaries Expense 181 Land $31 Advertising Expense 532 Delivery Expense 191 Orice Equipment 192 Accumulated Depreciation Office 533 Insurance Expense Equipment 534 Office Supplies Expense 193 Store Equipment $35Rent Expense 194 Accumulated Depreciation-Store Equipment 536 Repairs Expense LIABILITIES 537 Selling Expenses 538 Store Supplies Expense 211 Accounts Payable-Adkins Co. 561 Depreciation Expense-Office 21 Notes Payable Equipment 222 Interest Payable 562 Depreciation Expense-Store Equipment 31 Salaries Payable 590 Miscellaneous Expense 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Amount Descriptions Bank error in charging check as $390 instead of $930 Bank error in charging check as $930 instead of $300 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 BANK RECONCILIATION: 1. Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for 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. BRENTWOOD BIKE CO. Bank Reconciliation May 31 1 C halceding to thank samen Adjusted balance # Cash balance according to company's records 13 14 Adjusted balance JOURNAL: 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTIONNOSTRE DEBIT FINAL QUESTION: 3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash

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