Bank Reconciliation and Entries The cash account for Brentwood Bike Co. at May 1 indicated a balance of $14,880. During May, the total cash deposited was $74,570 and checks written totaled $69,240. The bank statement indicated a balance of $25,280 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items: a. Checks outstanding totaled $11,260. b. A deposit of $9,170, representing receipts of May 31, had been made too late to appear on the bank statement. c. The bank had collected for Brentwood Bike Co. $4,850 on a note left for collection. The face of the note was $4,470. d. A check for $270 returned with the statement had been incorrectly charged by the bank as $720. e. A check for $850 returned with the statement had been recorded by Brentwood Bike Co. as $580. The check was for the payment of an obligation to Adkins Co, on account f. Bank service charges for May amounted to $30. $. A check for $1,120 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. Banc Reconciliation May 31 Cash balance according to bank statement Add deposit of May 31s not recorded by bank ✓ Add bank error in charging check as $720 instead of 1276 Adjusted balance Cash balance according to company's records Add note and interest collected by bank Rebest check returned because of theficient funds 00000000 Previs Not Show Me How Print Item Chapter 8 Homework eBook InstructionST 1. Prepare a bank reconciliation as of May 31. Brentwood Bike Co. Bank Reconciliation. May 31 Cash balance according to bank statement Add deposit of May 31, not recorded by bank Add bank error in charging check as $720 instead of $270 Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank Deduct check returned because of insufficient funds Deduct bank service charges Deduct error in recording check Adjusted balance Feedback Check My Work 1. Set up two columns: one for the company cash account section and the other for the bank balance section. Determine the effect of the data on each. company sections of the reconciliation must be equal. If not, an item has been overlooked or treated in error. Check My Work company sections of the reconciliation must be equal. If not, an item has been overlooked or 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compou a. May 31 Cash Notes Receivable BE Interest Revenue b. May 31 Accounts Payable-Adkins Co. Accounts Receivable-Jennings Co. Miscellaneous Expense Cash Check My Work 3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash? Feedback Check My Work 3. Recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation. Feedback