The can account for Coastal Bike Co. at October 1 . 20Y9, indicated a balance of

Question

The can account for Coastal Bike Co. at October 1 . 20Y9, indicated a balance of m356. Durig Odbor, to total cash deposted was S141,04. and checks weer"-S137552. The bank stabement indicated a balance of $43,000 on October 31, 20Y9. Compaing tollowing reconciling iems the bank statement, the canceled checks, and the accompanyling memos with the records revealed the A. Checks outstanding totaled $6,515 B. A deposit of $1,779 representing receipts of October 31, had been made too late to appear on the bank stanement C. The bank had collected for Coastal Bike Co. $5.775 on a note left for colection. The face of the note was $5,500 D. A check for 3470 returned with the statement had been incorrecty charged by the bank as $740 Acheck for S310 returned with he statement had been morded by Coastal Bkn, asS130. The eneck was the payment or an obigaton o Rack Pro Co on account F Bank service charges for October amounted to $29 G. A check for $1,376 trom Bay Viea Condos was retumed by the bank due to insufficient unds Instructions 1. Prepare a bank reconolation as of October 31, 20 Reter soneAmon Descrpnons istprovdedfor me exact wordrgofto aswer choces entries Formose boxes when you must erter subtracted or neganve numbers use a mns sg. 2 Joumalize the necessary enties Rever to the Chat of Accounts for exsct wording of accoune 3. if a balance sheet were prepared tor Coastal Bke Co on October 31, a0oy, what amounr should be reoned as cash?

Explanation / Answer

Answer 1. COASTAL BIKE Bank Recocilation October 31, 20Y9 Bank's Cash Balance Company's Cash Balance Per Bank Statement          43,000.00 Per General Ledger      34,344.00 Add: Add: Deposit of Oct 31, not recorded by bank              1,779.00 Proceeds of Notes collected by bank, including $275 Interest         5,775.00 Bank error in charging Check as $740 instead of $470                  270.00            2,049.00          45,049.00      40,119.00 Less: Less: Outstanding Checks          (6,515.00) Error in recording Check - ($310 - $130)              (180.00) Bank Service Charges                (29.00) Check returned because of insufficient funds          (1,376.00)      (1,585.00) Bank Balance after Reconcilation          38,534.00 Company Balance per Reconcilation      38,534.00 Answer 2. Journal Entry Date Particulars Dr. Amt.   Cr. Amt. 31-Oct Cash                                                           5,775.00    Notes Receivables    5,500.00    Interest Revenue       275.00 (To record note collection) 31-Oct Accounts Receivable      1,376.00    Cash    1,376.00 (To Charge account for NSF check) 31-Oct Accounts Receivable          180.00    Cash       180.00 (To error in recording NSF Check) 31-Oct Bank Charges            29.00    Cash          29.00 (To record the bank service charges) No entry is Recorded for 1 Deposit in Transit 2 Outstanding Checks 3 Bank errors Answer 3. Cash shown in Balance Sheet on cot-31    38,534.00

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