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Bank Reconciliation and EntriesThe 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:Checks outstanding totaled $11,390.A deposit of $9,280, representing receipts of May 31, had beenmade too late to appear on the bank statement.The bank had collected for Brentwood Bike Co. $4,900 on a noteleft for collection. The face of the note was $4,530.A check for $580 returned with the statement had beenincorrectly charged by the bank as $850.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.Bank service charges for May amounted to $50.A check for $1,130 from Jennings Co. was returned by the bankbecause of insufficient funds.Instructions:1. Prepare a bank reconciliation as of May31.Brentwood Bike Co.Bank ReconciliationMay 31Cash balance according to bank statement$Add deposit of May 31, not recorded by bank$$Adjusted balance$Cash balance according to company's records$$$Adjusted balance$2. Journalize the necessary entries (a.) thatincrease cash and (b.) that decrease cash. The accounts have notbeen closed. For a compound transaction, if an amount box does notrequire an entry, leave it blank.a. May 31b. May 313. If a balance sheet is prepared for BrentwoodBike Co. on May 31, what amount should be reported as cash?$