In both problems, ONLY completing the bank reconciliation portion. 1. Prepare a bank reconciliation as of May 31. Be sur

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In both problems, ONLY completing the bankreconciliation portion.
1. Prepare a bank reconciliation as of May 31. Be sure tocomplete the statement heading. Refer to the Labels and AmountDescriptions for the exact wording of textentries. “Deduct:” or “Add:” will automaticallyappear if it is required. Whenever there is more than one adjustingitem in the bank portion of the reconciliation or the generalledger portion of the bank reconciliation, enter in the orderpresented in the instructions. Enter all amounts as positivenumbers.
BRENTWOOD BIKE CO.
Bank Reconciliation
1
Cash balance according to bank statement
2
3
4
5
Adjusted balance
6
7
Cash balance according to company’s records
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9
10
11
12
Adjusted balance
The cash account for Brentwood Bike Co. at May 1indicated a balance of $32,527. During May, the total cashdeposited was $139,121, and checks written totaled $135,890.The bank statement indicated a balance of $43,660 on May31. Comparing the bank statement, the canceled checks, and theaccompanying memos with the records revealed the followingreconciling items:
Sunshine Interiors deposits all cash receipts eachWednesday and Friday in a night depository after banking hours. Thedata required to reconcile the bank statement as of July31 have been taken from various documents and records and arereproduced as follows. The sources of the data are printed incapital letters. All checks were written for payments onaccount.
Click here to see JULY BANK STATEMENT.
Required:
Question Content Area
1. Prepare a bank reconciliation as ofJuly 31. If errors in recording deposits or checks are discovered,assume that the errors were made by the company. Assume that alldeposits are from cash sales. All checks are written to satisfyaccounts payable. When required, enter amounts in dollars andcents.
Add deposit of July 31, not recorded by bankAdd error inrecording check No. 627Add error in recording July 23 depositAddprincipal of note collectedAdd interest on note collected
Deduct deposit of July 31, not recorded by bankDeduct error inrecording July 23 depositDeduct check returned because ofinsufficient fundsDeduct check no. 613Deduct interest on notecollected
Deduct deposit of July 31, not recorded by bankDeduct error inrecording July 23 depositDeduct check returned because ofinsufficient fundsDeduct check no. 628Deduct bank servicecharges
Deduct error in July 23 depositDeduct error in recording checkNo. 627Deduct check returned because of insufficient fundsDeductcheck no. 633Deduct bank service charges
Add check returned because of insufficient fundsAdd check no.628Add check no. 633Add bank service chargesAdd note and interestcollected by bank
Add deposit of July 31, not recorded by bankAdd error inrecording July 23 depositAdd check returned because of insufficientfundsAdd check no. 613Add check no. 633
Add deposit of July 31, not recorded by bankAdd error inrecording check No. 627Add check no. 613Add check no. 633Add bankservice charges
Deduct deposit of July 31, not recorded by bankDeduct error inrecording check No. 627Deduct error in recording July 23depositDeduct check returned because of insufficient fundsDeductinterest on note collected
Deduct deposit of July 31, not recorded by bankDeduct error inrecording check No. 627Deduct error in recording July 23depositDeduct interest on note collectedDeduct bank servicecharges
Question Content Area
2. Journalize the necessary entries (a.)that increase cash and (b.) that decrease cash. The accounts havenot been closed. When required, enter amounts in dollars and cents.If an amount box does not require an entry, leave it blank.
Accounts ReceivableCashInterest RevenueNotes ReceivableSales
Accounts ReceivableCashInterest PayablePetty CashNotesReceivable
Accounts ReceivableCashInterest ExpenseInterest RevenueUnearnedInterest
Accounts ReceivableCashInterest PayableInterestReceivableSales
Accounts PayableAccounts ReceivableCashInterest ExpenseCashShort and Over
Accounts PayableAccounts ReceivableCash Short or OverPettyCashInterest Receivable
Accounts PayableCash Over and ShortMiscellaneousExpenseMiscellaneous Administrative RevenuePetty Cash
Accounts PayableAccounts ReceivableCashMiscellaneous RevenueCashShort and Over
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3. What is the amount of Cash that shouldappear on the balance sheet as of July 31?$fill in the blank 834fcafe7001fbb_1
4. Assume that a canceled check for $180has been incorrectly recorded by the bank as $1,800. Select how theerror would be included in a bank reconciliation and how it shouldbe corrected.
Not included in a bank reconciliationAddition to cash perdepositor's recordsDeduction from cash per bank statementDeductionfrom cash per depositor's recordsAddition to cash per bankstatement
Journalize a correcting entry adding $1,800 to cashJournalize anentry deducting $1,620 from cashRequest that the bank correct theerrorJournalize an entry adding $1,620 to cashJournalize an entrydeducting $1,800 from cash