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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $36,016. During May, the total cash deposted was $138,030, and checks

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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $36,016. During May, the total cash deposted was $138,030, and checks written totaled $138,571. The bank itatement indicaled a batance of $43,940 on May 31, Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the follo reconciling items: a. Checks outstanding lotaled 56,281 . 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 $5,570 on a note left for colection. The face of the note was \$5,400 d. A check for $570 returned with the statement had been incorrectly charged by the barik as $750. e. A check for \$210 retumed with the statement had been reconded by Brentwood Bhe Co, as $120. The check was for the payment of an coligation to Adkins Co. on account. t. Bank service charges for May arnounted to $266. g. A check for $1,394 from Jernings Co was returned by the bank due to insulficient funds Required: 1. Prepare a bark reconcilation as or May 31, Be sure to complete the statement heasing. Alefer to the Labeis and Amount Descriptions for the exact wording of text entries. "Deduct" or "Add" wil audomasically appear it is required. Whenever there is more than ane adfusting item in the bank partion of the reconcilation or the general lodger portion of the bank reconciliation, enter in the onder presented in the instructions. Enter all amounts as positive rumbers. 2. Joumalize the necessary entries. The accountr have not been closed Refer to the chart of accounts for the exact wording of the account thies. CNOW joumals do not use ines for joumal explanations. Every fine on a joumal page is used for debir or credit entries. CNOWjoumals all autamatically indent a credit entry when a credit amount is entered. 3. If a balance sheet as prepared for Brentwood Bive Co on May 31 , what amount should be reported as cash? CHART OF ACCOUNTS Brentwood Bike Co. General Ledger ASSETS 110 Cash 111 Petty Cash 112 Accounts Receivable-Jennings Co. 131 Notes Receivable 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 REVENUE 410 Sales 610 Interest Revenue 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 LIABILITIES 211 Accounts Payable-Adkins Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense 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

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