Bank reconciliation and entries

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   state-

ment, 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.

Instructions

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 Brentwood Bike Co. on May 31, 2016, what amount should be reported as cash?