The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $36,016. During October, the total cash deposited wa $138,030, and checks written totaled $138,571. The bank statement indicated a balance of $43,940 on October 31,20 Y9. Comparing bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $6,281, b. A deposit of $1,796 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. $5,670 on a note left for collection. The face of the note was $5,400. d. A check for $570 retumed with the statement had been incorrectly charged by the bank as $750. e. A check for $210 retumed 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. 1. Bank service charges for October amounted to $26. 9. A check for $1,394 from Bay View Condos was returned by the bank due to insutficient 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? ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 112 Accounts Receivable-Bay View Condos 131 Notes Receivable EXPENSES 141 Merchandise Inventory 510 Cost of Merchandise Sold 145 Office Supplies 515 Credit Card Expense 146 Store Supplies 516 Cash Short and Over 151 Prepaid Insurance 520 Salaries Expense 181 Land 531 Advertising Expense 191 Office Equipment 532 Delivery Expense 192 Accumulated Depreciation-Office Equipment 533 Insurance Expense 193 Store Equipment 534 Office Supplies Expense 194 Accumulated Depreciation-Store Equipment 535 Rent Expense 536 Repairs Expense LIABILITIES 537 Selling Expenses 211 Accounts Payable-Rack Pro Co. 538 Store Supplies Expense 221 Notes Payable 561 Depreciation Expense-Office Equipment 222 Interest Payable 562 Depreciation Expense-Store Equipment 231 Salaries Payable 590 Miscellaneous Expense 241 Sales Tax Payable 710 Interest Expense Amount Descriptions Adjusted balance Bank error in charging check as $750 instead of $570 Bank service charges Check returned because of insufficient funds Deposit in transit on October 31 Error in recording check Note collected by bank, including $270 interest Outstanding checks Total additions Total deductions Check My Work Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account bites, uestion not attempted. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconcliation, because these recorded by the company. Debit memo items like bank service charges decrease Cash. ltems that come from credit memos like collection the bank increase cash. If the company made an error that overstates or understates cash in the company section, the journal adjustment or increase Cash, respectively. Final Question Shaded cells have feedback. 3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash? Feedback Check My Work Determine the effect of the data on each section. Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. Recall that the company's cash account balance is updated for any items in the company section of the bank reconcillation