The cash account for Bravo Bike Co. at May 1, 2012, indicated a balance of $15,085. During May, the total cash deposited was $75,100 and checks written totaled $69,750. The bank statement indicated a balance of $25,460 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $11,360.
b. A deposit of $9,200, representing receipts of May 31, had been made too late to appear on the bank statement.
c. The bank had collected for Bravo Bike Co. $4,725 on a note left for collection. The face of the note was $4,500.
d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940.
e. A check for $410 returned with the statement had been recorded by Bravo Bike Co. as $140. The check was for the payment of an obligation to Portage Co. on account.
f. Bank service charges for July amounted to $40.
g. A check for $1,100 from Elkhart Co. was returned by the bank because of insufficient funds.
1. Prepare a bank reconciliation as of May 31.
2. Journalize the necessary entries. The accounts have not been closed.
3. If a balance sheet were prepared for Bravo Bike Co. on May 31, 2012, what amount should be reported as cash?