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:

1. Checks outstanding totaled $5,560.

2. A deposit of $1,050 representing receipts of October 31 had been made too late to appear on the bank statement.

3. The bank had collected for Coastal Bike Co. $2,120 on a note left for collection. The face of the note was $2,000.

4. A check for $370 returned with the statement had been incorrectly charged by the bank as $730.

5. 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.

6. Bank service charges for October amounted to $25.

7. 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.

   Check Figure: Adjusted balance: $4,830

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?

Match each reconciling item listed below with its proper treatment on the October 31 bank reconciliation for Coastal Bike Co. Error by company in journalizing check payment Bank error in charging company's account 1. added to the balance per the company Company's note receivable collected by the bank 2. deducted from the balance per the company Deposit in transit from 10/31 cash receipts 3. added to the balance per the bank statement Bank service charges 4. deducted from the balance per the bank statement Outstanding checks Customer check returned due to insufficient funds Question 2 (10 points) The true balance of cash for Coastal Bike at October 31, based on the bank reconciliation, is $ Question 3 (10 points) Saved Following the October 31 reconciliation, there will be a journal entry necessary to record the outstanding checks. True False Question 4 (10 points) v Saved Following the October 31 reconciliation, there will be a journal entry necessary to record the bank service charges. True False