The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,830. During May, the total cash deposited was $64,190 and checks written totaled $59,600. The bank statement indicated a balance of $21,760 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 $9,690.A deposit of $7,900, representing receipts of May 31, had been made too late to appear on the bank statement.The bank had collected for Brentwood Bike Co. $4,170 on a note left for collection. The face of the note was $3,850.A check for $490 returned with the statement had been incorrectly charged by the bank as $940.A check for $970 returned with the statement had been recorded by Brentwood Bike Co. as $790. The check was for the payment of an obligation to Adkins Co. on account.Bank service charges for May amounted to $30.A check for $960 from Jennings Co. was returned by the bank because of insufficient funds. 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have notbeen closed. For a compound transaction, if an amount box does not require an entry, leave it blank.а. Мay 31b. May 313. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

Date Particulars Debit Credit May 31 Cash 4,170 Note receivable 3,850 Interest…

Answered: The 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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The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,830. During May, the total cash deposited was $64,190 and checks written totaled $59,600. The bank statement indicated a balance of $21,760 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 $9,690.
A deposit of $7,900, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,170 on a note left for collection. The face of the note was $3,850.
A check for $490 returned with the statement had been incorrectly charged by the bank as $940.
A check for $970 returned with the statement had been recorded by Brentwood Bike Co. as $790. The check was for the payment of an obligation to Adkins Co. on account.
Bank service charges for May amounted to $30.
A check for $960 from Jennings Co. was returned by the bank because of insufficient funds.

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not
been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.
а. Мay 31
b. May 31
3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

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