Bank Reconciliation and Entries
The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,410. During May, the total cash deposited was $72,900 and checks written totaled $67,690. The bank statement indicated a balance of $24,710 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:
1. Checks outstanding totaled $11,010.
2. A deposit of $8,970, representing receipts of May 31, had been made too late to appear on the bank statement.
3. The bank had collected for Brentwood Bike Co. $4,740 on a note left for collection. The face of the note was $4,370.
4. A check for $360 returned with the statement had been incorrectly charged by the bank as $630.
5. A check for $410 returned with the statement had been recorded by Brentwood Bike Co. as $140. The check was for the payment of an obligation to Adkins Co. on account.
6. Bank service charges for May amounted to $60.
7. A check for $1,090 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 $
$
$
Adjusted balance $
Cash balance according to company's records $
$
$
Adjusted balance $

Answer and Explanation:

The preparation of the bank reconciliation statement is presented below:

                                     Brentwood Bike Co.

                               Bank reconciliation statement  

                                                May 31

Particulars               Amount                Particulars                    Amount  

Bank cash balance $24,710                   Company cash balance $19,620

Add: Deposits in transit $8,970            Add: Proceeds of note collected by bank                                                                                                  $4,740

Add: Bank error              $270               Less: Bank error               -$270

Less: Outstanding                                  Less: service fee               -$60

Check                          - $11,010             Less: check returned         -$1,090

Bank balance                                        Company balance

After reconciliation       $22,940          After reconciliation             $22,940

The computation is shown below:

For company cash balance

= $14,410 + $72,900 - $67,690

= $19,620

Bank error

= $630 - $360

= $270

Bank error

= $410 - $140

= $270

It helps to equate the bank balances and the cash balances by considering  these adjustments.

answer; dogs;

answer; because of bogus job sites,never share your dob on social media or job site,don't provide your s/s number on a web site;