Textbook Problem Bank reconciliation and entries The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 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 $5,560. B. A deposit of $1,050 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. $2,120 on a note left for collection. The face of the note was $2,000. D. A check for $370 returned with the statement had been incorrectly charged by the bank as $730. E. A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $25. G. A check for $880 from Bay View Condos was returned by the bank due to insufficient funds. Instructions 1. Prepare a bank reconciliation as of October 31, 20Y9. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Coastal Bike Co. on Octobor 21. 20 vo what amo. + chould be ronortod as cach?
Textbook Problem Bank reconciliation and entries The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $5,140. During October, the total cash deposited was $39,175, and checks written totaled $40,520. The bank statement indicated a balance of $8,980 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 $5,560. B. A deposit of $1,050 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. $2,120 on a note left for collection. The face of the note was $2,000. D. A check for $370 returned with the statement had been incorrectly charged by the bank as $730. E. A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $25. G. A check for $880 from Bay View Condos was returned by the bank due to insufficient funds. Instructions 1. Prepare a bank reconciliation as of October 31, 20Y9. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Coastal Bike Co. on Octobor 21. 20 vo what amo. + chould be ronortod as cach?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Bank reconciliation and entries
The cash account for Coastal Bike Co. at October 1, 20Y9,
See
indicated a balance of $5,140. During October, the total cash
deposited was $39,175, and checks written totaled $40,520. The
*Response time
bank statement indicated a balance of $8,980 on October 31, 20Y9.
question complexit
is 34 minutes and
Comparing the bank statement, the canceled checks, and the
su
accompanying memos with the records revealed the following
reconciling items:
A. Checks outstanding totaled $5,560.
B. A deposit of $1,050 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. $2,120 on a
note left for collection. The face of the note was $2,000.
D. A check for $370 returned with the statement had been
incorrectly charged by the bank as $730.
E. A check for $310 returned with the statement had been
recorded by Coastal Bike Co. as $130. The check was for the
payment of an obligation to Rack Pro Co. on account.
F. Bank service charges for October amounted to $25.
G. A check for $880 from Bay View Condos was returned by
the bank due to insufficient funds.
Instructions
1. Prepare a bank reconciliation as of October 31, 20Y9.
2. Journalize the necessary entries.
3. If a balance sheet were prepared for Coastal Bike Co. on
Octobor 21
2nvo Twhat ormount chould be ronortod os coch2
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