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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $30,356. During May, the total cash deposited was $141,640, and checks
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $30,356. During May, the total cash deposited was $141,640, and checks written totaled $137,652. The bank statement indicated a balance of $43,000 on May 31. Comparing the bank statement, the canceled checks, and the accompanying muros with the records rovealed the following reconciling items a. Checks outstanding totaled $6,515. b. A deposit of $1,779 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 $5,775 on a note left for collection. The face of the note was $5,500 d. A check for $470 returned with the statement had been incorrectly charged by the bank as $740, e. A check for $310 returned with the statement had been recorded by Brentwood Bike Co, as $130. The check was for the payment of an obligation to Adkins Co. on account 1. Bank service charges for May amounted to $29. A check for $1,376 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 it is required. Whenever there is more than one adjusting item in the bank portion of the reconotiation 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 CNOW Journals do not use lines for journal explanations. Every line on a journal page is used for debitor credit entries. CNOW Jumat will automatically indent a credit entry when a credit amount is entered 3. If a balance sheet is prepared for Brentwood Bike Coon May 31, what amount should be reported as cash? CHART OF ACCOUNTS Brentwood Bike Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 610 Interest Revenue 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 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 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense LIABILITIES 211 Accounts Payable-Adkins Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 151 Prepaid Insurance 181 Land 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 211 Accounts Payable-Adkins Co. 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 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Labels and Amount Descriptions Labels For the Month Ended May 31 May 31 Amount Descriptions Bank error in charging check as $470 instead of $740 Bank error in charging check as $740 instead of $470 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. Be sure to complete the statement heading. Peter to the Label and Amount Descriptions for the exact wording of text entries. "Deduct" or "Add" will automatically appear it is required. Whenever there is more than one adjusting inom in the bank portion of the recorollation or the prenatal ledger portion of the bank reconciliation, enter in the order presented in the instructions. Enter al amounts as positive numbers BRENTWOOD BIKE CO Bank Reconciliation Label 1 Cash balance according to bank statement 4 3 Adjusted balance Cash balance according to company's records 9 10 11 11 Adjusted balance 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 joumals do not use lines for Journal explanations. Every line on a journal page is used for dobit or credit ontrios. CNOW journals will automatically indent a credit entry when a credit amount is entered PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 1 1 & 5 7 Final Question 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31 what amount should be reported as cash
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