Question

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $36,016. During October, the total cash deposited was $138,030, and checks written totaled $138,571. The bank statement indicated a balance of $43,940 on October 31, 20Y9. 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 October 31, had been made too late to appear on the bank statement. C. The bank had collected for Coastal 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 Coastal Bike Co. as $120. The check was for the payment of an obligation to Rack Pro Co. on account. F. Bank service charges for October amounted to $26. G. A check for $1,394 from Bay View Condos was returned by the bank due to insufficient funds.

Answer 1

Step-by-step explanation:

This is an incomplete question and the missing part is as listed.

A) Prepare a bank reconciliation as at October 31, 20Y9

B)Jornalize the necessary entry

C)If a balanced sheet was prepared for Coastal Bike Co., what amount should be reported as cash?

Solution

Opening cash balance - 36,016

Cash deposited - 138,030

Check written - (138,571)

35,475

Bank reconciliation for Coastal bike as at October 31 20Y9

Cash balance according to Bank statement - 43,940

Unrecorded deposit 1796

Bank error (750-570) 180

Outstanding checks 6281

Total adjustment 4,305

Adjusted balance 39,635

Cash balance after considering the month,s transaction 35,475

Note collected by bank 5670

Bank charges 26

Returned checks 1,394

Error in recording check(210-120) 90

Total adjustment 4160

Adjusted balance 39,635

B

Entries that increase cash

Description Debit Credit

Cash 5670

Note receivable 5400

Interest Income 270

Accounts payable (Rack pro) 90

Accounts receivable (Bay view) 1394

Bank charges 26

Cash 1510

c

Amount to be recorded as cash in balanced sheet

Opening cash balance - 36,016

Cash deposited - 138,030

Check written - (138,571)

35,475