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Required: 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, 20Y9, what amount should be reported as cash?

Required: 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, 20Y9, what amount should be reported as cash?

FINANCIAL ACCOUNTING
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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The cash account for Coastal Bike Co. at October 1, 20Y9, 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, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $3,260. b. A deposit of $2,450 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. $5,300 on a note left for collection. The face of the note was $5,000. d. A check for $460 returned with the statement had been incorrectly charged by the bank as $640. e. A check for $430 returned with the statement had been recorded by Coastal Bike Co. as $340. The check was for the payment of an obligation Rack Pro Co. on account. f. Bank service charges for October amounted to $50. g. A check for $605 from Bay View Condos was returned by the bank due to insufficient funds. Required: 1. Prepare a bank reconciliation as of October 31, 2019. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
Transcribed Image Text:The cash account for Coastal Bike Co. at October 1, 20Y9, 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, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $3,260. b. A deposit of $2,450 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. $5,300 on a note left for collection. The face of the note was $5,000. d. A check for $460 returned with the statement had been incorrectly charged by the bank as $640. e. A check for $430 returned with the statement had been recorded by Coastal Bike Co. as $340. The check was for the payment of an obligation Rack Pro Co. on account. f. Bank service charges for October amounted to $50. g. A check for $605 from Bay View Condos was returned by the bank due to insufficient funds. Required: 1. Prepare a bank reconciliation as of October 31, 2019. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
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