eBook Sinprogress=false Show Me How Calculator Printem 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 22.230 Cash balance according to bank statement Add deposit of May 31, not recorded by bank Add bank error in charging check as $940 instead of $490 8,070 440 X 8,510 x Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank 4.260 Deduct check returned because of insufficient funds Deduct bank service charges Deduct error in recording check Previous Check My Work 1 more Check My Work uses remaining 4 00 10 15 AM 6/19/2020 eBook Show Me How Calculator Priette Deduct bank service charges Deduct error in recording check Adjusted balance Feedback Check My Work 1. Set up two columns: one for the company cash account section and the other for the bank balance section Determine the effect of the data on each column Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal if not an item has been overlooked or treated in error 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 Cash Notes Receivable 4.260 Interest Revenue b. May 31 Accounts Payable-Adkins Co. Accounts Receivable-Jennings Co. Miscellaneous Exnenses (no Previous Check My Work 1 more Check My Work uses remaining, de 10:16 AM 6/10/20 0 arch sonLocator Beinprogress=false eBook US Show Me How Calculator * 2 Print them Accounts Receivable-Jennings Co. Miscellaneous Expense 1000 50 Cash Feedback Check My Work 2. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company Debit memo items like bank service charges decrease Cash Hors that come from credit memes like collections of notes or interest by the bank increase cash if the company made an error that overstates or understates cash in the company Section, the journal adjustment would decrease Cash or increase Cash, respectively 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Feedback Oh Won 3. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation Ched: My Work 1 more Check My Work uses remaining Previous -) 10:13 AM 6/19/2020 ngageNOWV2 Onlir X Cengage Learning + V m.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Calculator Print Item Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,200. During May, the total cash deposited was $55,580 and checks written totaled $60,890. The bank statement indicated a balance of $22,230 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 $9,900. b. A deposit of $8,070, 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. $4,260 on a note left for collection. The face of the note was $3,930. d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. e. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $50. 9. A check for $980 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 2220 3.070 Cash balance according to bank statement Add deposit of May 31, not recorded by banky Add bank error in charging check as 5940 instead of $490 510 x 40 X Previous Ched: Ny Work 1 more Check My Workures remaining 11:35 AM 19/2020 eBook Sinprogress=false Show Me How Calculator Printem 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation May 31 22.230 Cash balance according to bank statement Add deposit of May 31, not recorded by bank Add bank error in charging check as $940 instead of $490 8,070 440 X 8,510 x Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank 4.260 Deduct check returned because of insufficient funds Deduct bank service charges Deduct error in recording check Previous Check My Work 1 more Check My Work uses remaining 4 00 10 15 AM 6/19/2020 eBook Show Me How Calculator Priette Deduct bank service charges Deduct error in recording check Adjusted balance Feedback Check My Work 1. Set up two columns: one for the company cash account section and the other for the bank balance section Determine the effect of the data on each column Recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal if not an item has been overlooked or treated in error 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 Cash Notes Receivable 4.260 Interest Revenue b. May 31 Accounts Payable-Adkins Co. Accounts Receivable-Jennings Co. Miscellaneous Exnenses (no Previous Check My Work 1 more Check My Work uses remaining, de 10:16 AM 6/10/20 0 arch sonLocator Beinprogress=false eBook US Show Me How Calculator * 2 Print them Accounts Receivable-Jennings Co. Miscellaneous Expense 1000 50 Cash Feedback Check My Work 2. Keep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company Debit memo items like bank service charges decrease Cash Hors that come from credit memes like collections of notes or interest by the bank increase cash if the company made an error that overstates or understates cash in the company Section, the journal adjustment would decrease Cash or increase Cash, respectively 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Feedback Oh Won 3. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation Ched: My Work 1 more Check My Work uses remaining Previous -) 10:13 AM 6/19/2020 ngageNOWV2 Onlir X Cengage Learning + V m.com/ilm/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false eBook Show Me How Calculator Print Item Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $13,200. During May, the total cash deposited was $55,580 and checks written totaled $60,890. The bank statement indicated a balance of $22,230 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 $9,900. b. A deposit of $8,070, 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. $4,260 on a note left for collection. The face of the note was $3,930. d. A check for $490 returned with the statement had been incorrectly charged by the bank as $940. e. A check for $520 returned with the statement had been recorded by Brentwood Bike Co. as $250. The check was for the payment of an obligation to Adkins Co. on account. f. Bank service charges for May amounted to $50. 9. A check for $980 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 2220 3.070 Cash balance according to bank statement Add deposit of May 31, not recorded by banky Add bank error in charging check as 5940 instead of $490 510 x 40 X Previous Ched: Ny Work 1 more Check My Workures remaining 11:35 AM 19/2020