Bank Reconciliation and Entries

The cash account for Brentwood Bike Co. at May 1 indicated abalance of $14,890. During May, the total cash deposited was$75,440 and checks written totaled $70,050. The bank statementindicated a balance of $25,570 on May 31. Comparing the bankstatement, the canceled checks, and the accompanying memos with therecords revealed the following reconciling items:

1. Checks outstanding totaled $11,390.
2. A deposit of $9,280, representing receipts of May 31, had beenmade too late to appear on the bank statement.
3. The bank had collected for Brentwood Bike Co. $4,900 on a noteleft for collection. The face of the note was $4,530.
4. A check for $580 returned with the statement had beenincorrectly charged by the bank as $850.
5. A check for $410 returned with the statement had been recordedby Brentwood Bike Co. as $140. The check was for the payment of anobligation to Adkins Co. on account.
6. Bank service charges for May amounted to $50.
7. A check for $1,130 from Jennings Co. was returned by the bankbecause of insufficient funds.

Instructions:

1. Prepare a bank reconciliation as of May31.

Brentwood Bike Co.
Bank Reconciliation
May 31
Cash balance according to bank statement		$
Add deposit of May 31, not recorded by bank	$
		$
Adjusted balance		$
Cash balance according to company's records		$
		$
	$
Adjusted balance		$

2. Journalize the necessary entries (a.) thatincrease cash and (b.) that decrease cash. The accounts have notbeen closed. For a compound transaction, if an amount box does notrequire an entry, leave it blank.

a. May 31
b. May 31

3. If a balance sheet is prepared for BrentwoodBike Co. on May 31, what amount should be reported as cash?
$