Question
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $12,830. During October, the total cash deposited was $64,990 and
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $12,830. During October, the total cash deposited was $64,990 and checks written totaled $60,340. The bank statement indicated a balance of $22,030 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $9,810.
A deposit of $7,990, representing receipts of October 31 had been made too late to appear on the bank statement.
The bank had collected for Coastal Bike Co. $4,220 on a note left for collection. The face of the note was $3,900.
A check for $580 returned with the statement had been incorrectly charged by the bank as $850.
A check for $970 returned with the statement had been recorded by Coastal Bike Co. as $790. The check was for the payment of an obligation to Rack Pro Co. on account.
Bank service charges for October amounted to $70.
A check for $970 from Bay View Condos was returned by the bank due to insufficient funds.
1. Prepare a bank reconciliation as of October 31, 20Y9. Coastal Bike Co. Bank Reconciliation October 31,20Y9 Cash balance according to bank statement Adjustments Total adjustments Adjusted balance Cash balance according to company's records Adjustments Total adjustments Adjusted balance
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