The cash account for brentwood bike co. at `may 1, 2016 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138880. The bank statement indicated a balance of $43525 on May 31. Comparing the `bank statement, the cancelled checks, and the accompanying memos with the records revealed the following reconciling items:
a. Checks outstanding totaled $6440
b. A deposit of $1,850 representing` receipts for May 31, had been made too late to appear on the bank statement.
c. The` bank had collected for Brentwood Bike Co. $5250 on a note left for collection. The face of the note was $5000
d. A check for $390 returned with the statement had been incorrectly charged by the bank as $930.
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 $30
g. A check for $1,325 from Jennings Co. was returned by the bank due to insufficient funds.
1. Prepare a bank reconciliation as of May 31.
2. Journalize the necessary entries. The accounts have not been closed.
3. If a balance sheet were prepared for Brenwood Bike Co. On May 31, 2016 what amount should be reported as cash?