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. Required: 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 October 31, 20Y9, what amount should be reported as cash?

Century 21 Accounting Multicolumn Journal

11th Edition

ISBN:9781337679503

Author:Gilbertson

Publisher:Gilbertson

Chapter5: Cash Control Systems

Section: Chapter Questions

Problem 2AP

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Question

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.

	Required:
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 October 31, 20Y9, what amount should be reported as cash?