The cash account for Brentwood Bike Co$.$ at May $1$ indicated a balance of $$14,540.$ During May, the total cash deposited was $$72,480$ and checks written totaled $$67,300.$ The bank statement indicated a balance of $$24,570$ on May $31.$ Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $$10,940.$

A deposit of $$8,920,$ representing receipts of May $31$ had been made too late to appear on the bank statement.

The bank had collected for Brentwood Bike Co$.$ $$4,710$ on a note left for collection. The face of the note was $$4,350.$

A check for $$490$ returned with the statement had been incorrectly charged by the bank as $$940.$

A check for $$850$ returned with the statement had been recorded by Brentwood Bike Co$.$ as $$580.$ The check was for the payment of an obligation to Adkins Co$.$ on account.

Bank service charges for May amounted to $$70.$

A check for $$1,090$ from Jennings Co$.$ was returned by the bank due to insufficient funds.

Instructions:

Question Content Area

$1.$ Prepare a bank reconciliation as of May $312.$ Journalize the necessary entries $($a$.)$ that increase cash and $($b$.)$ that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.