Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,500 and checks written totaled $59,890. The bank statement indicated a balance of $21,870 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 $9,740. b. A deposit of $7,930, 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. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $630 returned with the statement had been recorded by Brentwood Bike Co. as $360. 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 $970 from Jennings Co. was returned by the bank because of insufficient funds.

Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,980. During May, the total cash deposited was $64,500 and checks written totaled $59,890. The bank statement indicated a balance of $21,870 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 $9,740. b. A deposit of $7,930, 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. $4,190 on a note left for collection. The face of the note was $3,870. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $630 returned with the statement had been recorded by Brentwood Bike Co. as $360. 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 $970 from Jennings Co. was returned by the bank because of insufficient funds.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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