Corporate Financial Accounting 14th Edition by Carl Warren,James Reeve,Jonathan Duchac

تمرين 42

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