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 $3,260.
b.	A deposit of $2,450 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. $5,300 on a note left for collection. The face of the note was $5,000.
d.	A check for $460 returned with the statement had been incorrectly charged by the bank as $640.
e.	A check for $430 returned with the statement had been recorded by Coastal Bike Co. as $340. The check was for the payment of an obligation to Rack Pro Co. on account.
f.	Bank service charges for October amounted to $50.
g.	A check for $605 from Bay View Condos was returned by the bank due to insufficient funds.

	Required:
1.	Prepare a bank reconciliation as of October 31, 20Y9.
2.	Journalize the necessary entries.
3.	If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?

WHAT IS LINE 13?

2. Journalize the necessary entries.

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Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. Debit memo items like bank service charges decrease Cash. Items that come from credit memos like collections of notes or interest by the bank increase cash. If the company made an error that overstates or understates cash in the company section, the journal adjustment would decrease Cash or increase Cash, respectively.

Bank Reconciliation Shaded cells have feedback. Coastal Bike Co. Score: 102/118 Bank Reconciliation October 31, 20Y9 Points: 21.61/25 JOURNAL Score: 61/87 ACCOUNTING EQUATION Points: 11.22/16 3. If a balance sheet were prepared for Coastal Bike Co. on October 31,20Y9, what amount should be reported as cash? x 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