The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,320. During May, the total cash deposited was $72,000 and checks written totaled $66,850. The bank statement indicated a balance of $24,410 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 $10,870. b. A deposit of $8,860, representing receipts of May 31, had been made too late to appear on the bank statement. G. The bank had collected for Brentwood Bike Co. $4,600 on a note left for collection. The face of the note was $4,320. d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. e. A check for $970 returned with the statement had been recorded by Brentwood Bike Co. as $790. The check was for the payment of an obligation to Adidins Co. on account. 1. Bank service charges for May amounted to $40. 9. A check for $1,080 from Jennings Co. was returned by the bank because of insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 Cash balance according to bank statement Add deposit of May 31, not recorded by bank 24,410 Add bank error in charging check as $940 instead of $490 Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank Deduct check returned because of insufficient funds Deduct bank service charges Deduct error in recording check Adjusted balance 2. Journalize the necessary entries (a) that increase cash and (b) that decrease cash. The accounts have not been closed. For a compound 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been dosed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. May 31 Cash Notes Receivable Interest Revenue 1 1101 1011 1101 Accounts Payable Adkins Co. Accounts Receivable-Jennings Co. Miscellaneous Expense Cash 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash