Required: 1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of 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. Enter all amounts as positive numbers. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
Required: 1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of 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. Enter all amounts as positive numbers. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Instructions
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $32,991. During May, the total cash deposited was $139,960, and checks written totaled $137,747. The
bank statement indicated a balance of $43,370 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 $6,476.
b. A deposit of $1,779 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 $580 returned with the statement had been incorrectly charged by the bank as $850.
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 $28.
g. A check for $1,393 from Jennings Co. was returned by the bank due to insufficient funds.
Required:
1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer Labels and Amount Descriptions for the
exact wording of 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.
Enter all amounts as positive numbers.
2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles.
CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will
automatically indent a credit entry when a credit amount is entered.
3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2d8bd87-a7b3-4179-b62c-44ece0415739%2Fae0a8d07-e338-4e59-9574-7bf67f881106%2Fkljq8qk_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Instructions
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $32,991. During May, the total cash deposited was $139,960, and checks written totaled $137,747. The
bank statement indicated a balance of $43,370 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 $6,476.
b. A deposit of $1,779 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 $580 returned with the statement had been incorrectly charged by the bank as $850.
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 $28.
g. A check for $1,393 from Jennings Co. was returned by the bank due to insufficient funds.
Required:
1. Prepare a bank reconciliation as of May 31. Be sure to complete the statement heading. Refer Labels and Amount Descriptions for the
exact wording of 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.
Enter all amounts as positive numbers.
2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles.
CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will
automatically indent a credit entry when a credit amount is entered.
3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
![Journal
2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for
journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
S+ UN
4
7
DATE
DESCRIPTION
JOURNAL
POST. REF.
DEBIT
CREDIT
ASSETS
4
ACCOUNTING EQUATION
PAGE 1
LIABILITIES
EQUITY](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe2d8bd87-a7b3-4179-b62c-44ece0415739%2Fae0a8d07-e338-4e59-9574-7bf67f881106%2F9p6pps_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Journal
2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for
journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
S+ UN
4
7
DATE
DESCRIPTION
JOURNAL
POST. REF.
DEBIT
CREDIT
ASSETS
4
ACCOUNTING EQUATION
PAGE 1
LIABILITIES
EQUITY
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