The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $36,016. During October, the total cash deposit

Question

20 days ago

6

The cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $36,016. During October, the total cash deposit

ed 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.

Business

1 answer:

Katen [3.5K] · Answer 1 · 2026-04-09T03:13:11+03:00

Response:

This question lacks components that are enumerated as follows:

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

B) Journalize the required entry

C) If a balance sheet were generated for Coastal Bike Co., what amount should be recorded as cash?

Solution

Beginning cash balance - 36,016Cash deposited - 138,030

Check written - (138,571) 35,475

Bank reconciliation for Coastal Bike as of October 31 20Y9

Cash balance from Bank statement - 43,940

Unrecorded deposit 1796

Bank error (750-570) 180

Outstanding checks 6281

Total adjustments 4,305

Adjusted balance 39,635

Cash balance adjusted after transactions of the month 35,475

Note collected by bank 5670

Bank service charges paid 26

Returned checks received 1,394

Discrepancy recorded for a check(210-120) 90

Total adjustments made 4160

Adjusted balance after all transactions 39,635

B

Increase in cash entries

Description Debit Credit

Cash 5670

Note receivable collected 5400

Interest income noted 270

Accounts payable (Rack pro) 90

Accounts receivable (Bay view) 1394

Bank service charges incurred 26

Cash accounted for in final calculation 1510

c

Amount to report as cash on balance sheet

Opening cash account - 36,016

Cash deposited - 138,030

Check payment made - (138,571)

35,475