Bank reconciliation and entriesThe cash account for Coastal Bike Co. at October 1, 2019, indicated abalance of $5,140. During October, the total cash deposited was $39,175,and checks written totaled $40,520. The bank statement indicated abalance of $8,980 on October 31, 2019. Comparing the bank statement,the canceled checks, and the accompanying memos with the recordsrevealed the following reconciling items: A. Checks outstanding totaled $5,560.B. A deposit of $1,050 representing receipts of October 31 had beenmade too late to appear on the bank statement.C. The bank had collected for Coastal Bike Co. $2, 120 on a note leftfor collection. The face of the note was $2,000. D. A check for $370 returned with the statement had beenincorrectly charged by the bank as $730.E. A check for $310 returned with the statement had been recordedby Coastal Bike Co. as $130. The check was for the payment of anobligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $25.G. A check for $880 from Bay View Condos was returned by thebank due to insufficient funds.Instructions 1. Prepare a bank reconciliation as of October 31, 20Y9.2. Journalize the necessary entries.3. If a balance sheet were prepared for Coastal Bike Co. on October31, 2019, what amount should be reported as cash?
Bank reconciliation and entries
The cash account for Coastal Bike Co. at October 1, 2019, 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, 2019. Comparing the bank statement,
the canceled checks, and the accompanying memos with the records
revealed the following reconciling items:
A. Checks outstanding totaled $5,560.
B. A deposit of $1,050 representing receipts of October 31 had been
made too late to appear on the bank statement.
C. The bank had collected for Coastal Bike Co. $2, 120 on a note left
for collection. The face of the note was $2,000.
D. A check for $370 returned with the statement had been
incorrectly charged by the bank as $730.
E. 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.
F. Bank service charges for October amounted to $25.
G. 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.
2. Journalize the necessary entries.
3. If a balance sheet were prepared for Coastal Bike Co. on October
31, 2019, what amount should be reported as cash?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
