The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $32,991. During October, the total cash deposited was $139,960, and checks written totaled $137,747. The bank statement indicated a balance of $43,370 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 $6,476.
b.	A deposit of $1,779 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. $5,250 on a note left for collection. The face of the note was $5,000.
d.	A check for $580 returned with the statement had been incorrectly charged by the bank as $850.
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 $28.
g.	A check for $1,393 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?

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $32,991. During October, the total cash deposited was $139,960, and checks written totaled $137,747. The bank statement indicated a balance of $43,370 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 $6,476.
b.	A deposit of $1,779 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. $5,250 on a note left for collection. The face of the note was $5,000.
d.	A check for $580 returned with the statement had been incorrectly charged by the bank as $850.
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 $28.
g.	A check for $1,393 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?

Amount Descriptions

Adjusted balance
Bank error in charging check as $850 instead of $580
Bank service charges
Check returned because of insufficient funds
Deposit in transit on October 31
Error in recording check
Note collected by bank, including $250 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?