The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,830. During May, the total cash deposited was $64,190 and checks written totaled $59,600. The bank statement indicated a balance of $21,760 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 $9,690.A deposit of $7,900, representing receipts of May 31, had been made too late to appear on the bank statement.The bank had collected for Brentwood Bike Co. $4,170 on a note left for collection. The face of the note was $3,850.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 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 $30.A check for $960 from Jennings Co. was returned by the bank because of insufficient funds.

Bank reconciliation statement is statement which reconciles the cash balance as per bank records and…

Answered: The cash account for Brentwood Bike Co.…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

The cash account for Brentwood Bike Co. at May 1 indicated a balance of $12,830. During May, the total cash deposited was $64,190 and checks written totaled $59,600. The bank statement indicated a balance of $21,760 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 $9,690.
A deposit of $7,900, representing receipts of May 31, had been made too late to appear on the bank statement.
The bank had collected for Brentwood Bike Co. $4,170 on a note left for collection. The face of the note was $3,850.
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 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 $30.
A check for $960 from Jennings Co. was returned by the bank because of insufficient funds.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions