Question

Book Show Me How Calculator Bank reconciliation and entries Chart of Accounts Amount Descriptions Instructions The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250 During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 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 $6.440. B. A deposit of $1,850 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 $390 returned with the statement had been incorrectly charged by the bank as $930. 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 $30 G. A check for $1.325 from Jennings Co. was returned by the bank due to insufficient funds

Answer 1

required 1 Bank Reconciliation Statement Balance as per Bank Statement Add: Deposits in transit |Add: Error in recording the issued check $ $ $ 43,525 1,850 540 $ 2,390 $ 45,915 $ Less: Outstanding checks Adjusted balance as per Bank 6,440$ 6,440 $ 39,475 $ 35,670 Balance as per Books (34250+140300-138880) Add: Notets collected with interest $ Less: NSF check $ $ Less: Service charges 5,250 $ 5,250 $ 40,920 1,325 30 90S 1,445 $ 39,475 Less: Error in issued check Adjusted balance as per Books

Credit $ required 2 Journal entries: Accounts title and explanations Cash account Dr. Notes receivable Account Interest revenue Debit $ 5,250 $ $ $ 5,000 250 $ 1,325 Accounts receivable-jenning co. Dr. Cash account $ 1,325 $ 30 Misc. expense Account Dr. Cash account $ 30 Accounts payable-Adkins Co. Account Dr. 90 Cash account $ 90 required3 The Balance shhown in books is $ 39,475