Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 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 $5,560. |
b. | A deposit of $1,050 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. $2,120 on a note left for collection. The face of the note was $2,000. |
d. | A check for $370 returned with the statement had been incorrectly charged by the bank as $730. |
c. | A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account. |
e. | Bank service charges for October amounted to $25. |
f. | A check for $880 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? |
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. Joumalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. 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 reconciliation. 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. Joumalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. Question not attempted. 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 reconciliation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started