The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,850. During May, the total cash deposited was $75,160 and checks written totaled $69,790. The bank statement indicated a balance of $25,480 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:Checks outstanding totaled $11,350.A deposit of $9,240, representing receipts of May 31, had been made too late to appear on the bank statement.The bank had collected for Brentwood Bike Co. $4,890 on a note left for collection. The face of the note was $4,510.A check for $580 returned with the statement had been incorrectly charged by the bank as $850.A check for $410 returned with the statement had been recorded by Brentwood Bike Co. as $140. The check was for the payment of an obligation to Adkins Co. on account.Bank service charges for May amounted to $70.A check for $1,130 from Jennings Co. was returned by the bank because of insufficient funds.Instructions:Question Content Area1. Prepare a bank reconciliation as of May 31.

The bank reconciliation statement is prepared to equate the balances of cash book and pass book with…

Answered: e cash account for Brentwood Bike Co.…

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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he cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,850. During May, the total cash deposited was $75,160 and checks written totaled $69,790. The bank statement indicated a balance of $25,480 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

Checks outstanding totaled $11,350.
A deposit of $9,240, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,890 on a note left for collection. The face of the note was $4,510.
A check for $580 returned with the statement had been incorrectly charged by the bank as $850.
A check for $410 returned with the statement had been recorded by Brentwood Bike Co. as $140. The check was for the payment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to $70.
A check for $1,130 from Jennings Co. was returned by the bank because of insufficient funds.

Instructions:

Question Content Area

1. Prepare a bank reconciliation as of May 31.

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