The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $

Question

The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $36,016. During May, the total cash deposited was $138,030, and checks written totaled $138,571. The bank statement indicated a balance of $43,940 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 $6,281. B. A deposit of $1,796 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. $5,670 on a note left for collection. The face of the note was $5,400. D. A check for $570 returned with the statement had been incorrectly charged by the bank as $750. E. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account. F. Bank service charges for May amounted to $26. G. A check for $1,394 from Jennings Co. was returned by the bank due to insufficient funds.

Explanation / Answer

Bank Reconcilliation Statement Balance as per Bank 43940 Less: Checks outstanding -6281 Add: Depositas on May 31 1796 Less; Difference in note -5670 Add: Amount wrongly charged 180 750-570 Add: Check wrongly entered 90 Add; Check returned 1394 Bank Charges 26 Balance as per Cas Book 36016

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