The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 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 $6,440.B. A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement.C. The bank had collected for Brentwood Bike Co. $5,250 on a note left for collection. The face of the note was $5,000.D. A check for $390 returned with the statement had been incorrectly charged by the bank as $930.E. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account.F. Bank service charges for May amounted to $30.G. A check for $1,325 from Jennings Co. was returned by the bank due to insufficient funds.Instructions1. Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct:" or "Add:" will automatically appear if it is required.2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, 2016, what amount should be reported as cash?

 

 

 

 

 

CHART OF ACCOUNTSBrentwood Bike Co.General LedgerASSETS110Cash111Petty Cash112Accounts Receivable-Jennings Co.131Notes Receivable141Merchandise Inventory145Office Supplies146Store Supplies151Prepaid Insurance181Land191Office Equipment192Accumulated Depreciation-Office Equipment193Store Equipment194Accumulated Depreciation-Store Equipment

LIABILITIES211Accounts Payable-Adkins Co.221Notes Payable222Interest Payable231Salaries Payable241Sales Tax Payable

EQUITY310Owner, Capital311Owner, Drawing312Income Summary

REVENUE410Sales610Interest Revenue

EXPENSES510Cost of Merchandise Sold515Credit Card Expense516Cash Short and Over520Salaries Expense531Advertising Expense532Delivery Expense533Insurance Expense534Office Supplies Expense535Rent Expense536Repairs Expense537Selling Expenses538Store Supplies Expense561Depreciation Expense-Office Equipment562Depreciation Expense-Store Equipment590Miscellaneous Expense710Interest Expense

 

 

 

 

Bank Reconciliation

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1. Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct:" or "Add:" will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions.

Score: 5/82

BRENTWOOD BIKE CO.

Bank Reconciliation

May 31, 2016

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Cash balance according to bank statement

 

 

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Adjusted balance

 

 

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Cash balance according to company's records

 

 

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Adjusted balance

 

 

Feedback

Check My WorkSet up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each column. 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.

 

 

 

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Journal

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2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles.

All transactions on this page must be entered (except for post ref(s)) before you will receive Check My Work feedback.

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JOURNAL

Score: 33/87

 

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Bank Reconciliation

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Amount Descriptions

Bank error in charging check as $390 instead of $930Bank error in charging check as $930 instead of $390Bank service chargesCheck returned because of insufficient fundsCompany error in recording note collected by bankDeposit of May 31, not recorded by bankError in recording checkOutstanding checksProceeds of note collected by bank, including $250 interest

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Status NEW Posted 20 Jun 2017 03:06 AM My Price 20.00

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