4c 8 The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,330. During May, the total cash deposited was $67,200 and checks written totaled $62,400. The bank statement indicated a balance of $22,780 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 $10,150.

A deposit of $8,270, representing receipts of May 31 had been made too late to appear on the bank statement.

The bank had collected for Brentwood Bike Co. $4,370 on a note left for collection. The face of the note was $4,030.

A check for $360 returned with the statement had been incorrectly charged by the bank as $630.

A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation to Adkins Co. on account.

Bank service charges for May amounted to $50.

A check for $1,010 from Jennings Co. was returned by the bank due to insufficient funds.

Instructions:

Question Content Area

1. Prepare a bank reconciliation as of May 31.

Brentwood Bike Co. Bank Reconciliation May 31

Cash balance according to bank statement		$fill in the blank 9cce14011fa4f95_1
Add bank service chargesAdd deposit of May 31, not recorded by bankAdd error in recording checkAdd outstanding checksAdd note and interest collected by bank	$- Select -
Add bank error in charging check as $630 instead of $360Add bank service chargesAdd check returned because of insufficient fundsAdd note and interest collected by bankDeduct error in recording check	- Select -	- Select -
Deduct bank service chargesDeduct check returned because of insufficient fundsDeduct deposit of May 31, not recorded by bankDeduct outstanding checksDeduct note and interest collected by bank		- Select -
Adjusted balance		$fill in the blank 9cce14011fa4f95_9
Cash balance according to company's records		$fill in the blank 9cce14011fa4f95_10
Add bank error in charging check as $630 instead of $360Add bank service chargesAdd check returned because of insufficient fundsAdd deposit of May 31, not recorded by bankAdd note and interest collected by bank		- Select -
Deduct bank error in charging check as $630 instead of $360Deduct check returned because of insufficient fundsDeduct deposit of May 31, not recorded by bankDeduct outstanding checksDeduct note and interest collected by bank	$- Select -
Deduct bank error in charging check as $630 instead of $360Deduct bank service chargesDeduct deposit of May 31, not recorded by bankDeduct outstanding checksDeduct note and interest collected by bank	- Select -
Deduct bank error in charging check as $630 instead of $360Deduct deposit of May 31, not recorded by bankDeduct error in recording checkDeduct outstanding checksDeduct note and interest collected by bank	- Select -	- Select -
Adjusted balance		$fill in the blank 9cce14011fa4f95_20

Question Content Area

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

a. May 31	CashCash Short and OverInterest RevenueNotes ReceivablePetty Cash	- Select -	- Select -
	CashInterest PayableInterest ReceivableNotes ReceivablePetty Cash	- Select -	- Select -
	CashInterest RevenuePetty CashSalesUnearned Interest	- Select -	- Select -
b. May 31	Accounts Payable-Adkins Co.Accounts Receivable-Adkins Co.Cash Short and OverInterest RevenueNotes Receivable	- Select -	- Select -
	Accounts Payable-Jennings Co.Accounts Receivable-Jennings Co.Interest ExpenseInterest RevenuePetty Cash	- Select -	- Select -
	CashInterest ExpenseMiscellaneous ExpenseNotes PayableNotes Receivable	- Select -	- Select -
	Accounts Payable-Adkins Co.Accounts Receivable-Jennings Co.CashMiscellaneous ExpenseNotes Receivable	- Select -	- Select -

Question Content Area

3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? $fill in the blank 6078a9fe5fb8003_1