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The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $33,857. During October, the total cash deposited was $139,616, and

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $33,857. During October, the total cash deposited was $139,616, and checks written totaled $138,547. The bank statement indicated a balance of $43,270 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

a. Checks outstanding totaled $6,340.
b. A deposit of $1,858 representing receipts of October 31, had been made too late to appear on the bank statement.
c. The bank had collected for Coastal Bike Co. $5,565 on a note left for collection. The face of the note was $5,300.
d. A check for $590 returned with the statement had been incorrectly charged by the bank as $950.
e. A check for $210 returned with the statement had been recorded by Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account.
f. Bank service charges for October amounted to $36.
g. A check for $1,217 from Bay View Condos was returned by the bank due to insufficient funds.
Instructions
1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.
3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?

CHART OF ACCOUNTS
Coastal Bike Co.
General Ledger
ASSETS
110 Cash
111 Petty Cash
112 Accounts Receivable-Bay View Condos
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
LIABILITIES
211 Accounts Payable-Rack Pro Co.
221 Notes Payable
222 Interest Payable
231 Salaries Payable
241 Sales Tax Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
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
537 Selling Expenses
538 Store Supplies Expense
561 Depreciation Expense-Office Equipment
562 Depreciation Expense-Store Equipment
590 Miscellaneous Expense
710 Interest Expense

Amount Descriptions
Adjusted balance
Bank error in charging check as $950 instead of $590
Bank service charges
Check returned because of insufficient funds
Deposit in transit on October 31
Error in recording check
Note collected by bank, including $265 interest
Outstanding checks
Total additions
Total deductions

1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.

Coastal Bike Co.

Bank Reconciliation

October 31, 20Y9

1

Cash balance according to bank statement

2

3

4

5

6

7

8

Cash balance according to companys records

9

10

11

12

13

14

2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?

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