The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,080. During May, the total cash deposited was $65,740 and checks written totaled $61,040. The bank statement indicated a balance of $22,290 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 $9,930. b. A deposit of $8,090, 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. $4,270 on a note left for collection. The face of the note was $3,940. d. A check for $360 returned with the statement had been incorrectly charged by the bank as $630. e. 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. f. Bank service charges for May amounted to $70. g. A check for $990 from Jennings Co. was returned by the bank due to insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31.

The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,080. During May, the total cash deposited was $65,740 and checks written totaled $61,040. The bank statement indicated a balance of $22,290 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 $9,930. b. A deposit of $8,090, 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. $4,270 on a note left for collection. The face of the note was $3,940. d. A check for $360 returned with the statement had been incorrectly charged by the bank as $630. e. 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. f. Bank service charges for May amounted to $70. g. A check for $990 from Jennings Co. was returned by the bank due to insufficient funds. Instructions: 1. Prepare a bank reconciliation as of May 31.

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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