Bank Reconciliation and Entries
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $15,010. During October, the total cash deposited was $75,650 and checks written totaled $70,240. The bank statement indicated a balance of $25,650 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $11,420.
A deposit of $9,300, representing receipts of October 31 had been made too late to appear on the bank statement.
The bank had collected for Coastal Bike Co. $4,920 on a note left for collection. The face of the note was $4,540.
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 Coastal Bike Co. as $790. The check was for the payment of an obligation to Rack Pro Co. on account.
Bank service charges for October amounted to $50.
A check for $1,130 from Bay View Condos was returned by the bank due to insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of October 31, 20Y9.
Coastal Bike Co. Bank Reconciliation October 31, 20Y9 Cash balance according to bank statement $ Adjustments: $ Total adjustments Adjusted balance $ Cash balance according to company's records $ Adjustments: $ Total adjustments Adjusted balance $
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.
a. 20Y9 Oct. 31 b. Oct. 31
3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
$
Bank Reconciliation and Entries
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $15,010. During October, the total cash deposited was $75,650 and checks written totaled $70,240. The bank statement indicated a balance of $25,650 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
Checks outstanding totaled $11,420.
A deposit of $9,300, representing receipts of October 31 had been made too late to appear on the bank statement.
The bank had collected for Coastal Bike Co. $4,920 on a note left for collection. The face of the note was $4,540.
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 Coastal Bike Co. as $790. The check was for the payment of an obligation to Rack Pro Co. on account.
Bank service charges for October amounted to $50.
A check for $1,130 from Bay View Condos was returned by the bank due to insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of October 31, 20Y9.
| Coastal Bike Co. | ||
| Bank Reconciliation | ||
| October 31, 20Y9 | ||
| Cash balance according to bank statement | $ | |
| Adjustments: | ||
| $ | ||
| Total adjustments | ||
| Adjusted balance | $ | |
| Cash balance according to company's records | $ | |
| Adjustments: | ||
| $ | ||
| Total adjustments | ||
| Adjusted balance | $ | |
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.
| a. 20Y9 Oct. 31 | |||
| b. Oct. 31 | |||
3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
$
Related questions
The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $34,800. During October, the total cash deposited was $139,523, and checks written totaled $138,774. The bank statement indicated a balance of $43,875 on October 31, 20Y9. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: A. Checks outstanding totaled $6,340. B. A deposit of $1,643 representing receipts of October 31, had been made too late to appear on the bank statement. C. The bank had collected for Coastal Bike Co. $5,565 on a note left for collection. The face of the note was $5,300. D. A check for $260 returned with the statement had been incorrectly charged by the bank as $620. E. A check for $210 returned with the statement had been recorded by Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $22. G. A check for $1,464 from Bay View Condos was returned by the bank due to insufficient funds. Instructions 1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
| Adjusted balance | |
| Bank error in charging check as $260 instead of $620 | |
| Bank error in charging check as $620 instead of $260 | |
| Bank service charges | |
| Check returned because of insufficient funds | |
| Company error in recording note collected by bank | |
| Deposit of October 31, not recorded by bank | |
| Error in recording check | |
| Outstanding checks | |
| Proceeds of note collected by bank, including $265 interest | |
| Total adjustments |
1. Prepare a bank reconciliation as of October 31, 20Y9. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Score: 48/112
| Coastal Bike Co. |
| Bank Reconciliation |
| October 31, 20Y9 |
| 1 | Cash balance according to bank statement | â | |
| 2 | Adjustments: | ||
| 3 | â | â | |
| 4 | â | â | |
| 5 | â | ||
| 6 | |||
| 7 | Adjusted balance | ||
| 8 | |||
| 9 | Cash balance according to companyâs records | ||
| 10 | Adjustments: | ||
| 11 | |||
| 12 | â | ||
| 13 | â | ||
| 14 | |||
| 15 | |||
| 16 | â |
P
3. If a balance sheet were prepared for Coastal Bike Co. on October 31, 20Y9, what amount should be reported as cash?
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,350. During May, the total cash deposited was $66,800 and checks written totaled $62,020. The bank statement indicated a balance of $22,650 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 $10,090.
A deposit of $8,220, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,340 on a note left for collection. The face of the note was $4,010.
A check for $270 returned with the statement had been incorrectly charged by the bank as $720.
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 $60.
A check for $1,000 from Jennings Co. was returned by the bank because of insufficient funds.
Instructions:
1. Prepare a bank reconciliation as of May 31.
| Brentwood Bike Co. | ||
| Bank Reconciliation | ||
| May 31 | ||
| Cash balance according to bank statement | $ | |
| Add deposit of May 31, not recorded by bank | $ | |
| Add bank error in charging check as $720 instead of $270 | ||
| $ | ||
| Deduct bank service charges | ||
| Adjusted balance | $ | |
| Cash balance according to company's records | $ | |
| Add note and interest collected by bank | ||
| $ | ||
| Deduct bank error in charging check as $720 instead of $270 | $ | |
| Deduct bank service charges | ||
| Deduct error in recording check | ||
| Adjusted balance | $ | |
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.
| a. May 31 | |||
| b. May 31 | |||
3. If a balance sheet were prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?
$
