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 to 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, 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?
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 to 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, 20Y9.
2. Journalize the necessary entries.
3. If a
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