I was wonderinf if i did this right. The cash account for Brentwood Bike Co. at

Question

I was wonderinf if i did this right.

The cash account for Brentwood Bike Co. at May 1, 2016, indicated a balance of $32,527. During May, the total cash deposited was $139,121, and checks written totaled $135,890. The bank statement indicated a balance of $43,660 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

If a balance sheet were prepared for Brentwood Bike Co. on May 31, 2016, what amount should be reported as cash?

A. Checks outstanding totaled $6,625. B. A deposit of $1,888 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. $5,250 on a note left for collection. The face of the note was $5,000. D. A check for $260 returned with the statement had been incorrectly charged by the bank as $620. E. A check for $410 returned with the statement had been recorded by Brentwood Bike Co. as $140. The check was for the payment of an obligation to Adkins Co. on account. F. Bank service charges for May amounted to $37. G. A check for $1,418 from Jennings Co. was returned by the bank due to insufficient funds.

Explanation / Answer

Solution.

. 3. If Balance sheet were prepared for Brentwood Bike Co. on May 31, 2016,

This amount should be reported as cash = $43,660.

openning cash          32,527.00 cash deposit        139,121.00        171,648.00 check issued      (135,890.00) Balance          35,758.00

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.