Question

journal..v

he cash account for Coastal Bike Co. at October 1, 20Y9, indicated a balance of $32,788. During October, the total cash deposited was $139,699, and checks written totaled $138,679. The bank statement indicated a balance of $42,830 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 $6,659.
B.	A deposit of $1,875 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. $6,195 on a note left for collection. The face of the note was $5,900.
D.	A check for $170 returned with the statement had been incorrectly charged by the bank as $710.
E.	A check for $310 returned with the statement had been recorded by Coastal Bike Co. as $130. The check was for the payment of an obligation to Rack Pro Co. on account.
F.	Bank service charges for October amounted to $24.
G.	A check for $1,213 from Bay View Condos was returned by the bank due to insufficient funds.

Answer 1

Coastal Bike co.
Bank reconciliation statement
Oct-31
Cash balance according to bank statement		$        42,830
Add:deposit of oct 31 not recorded by bank	$            1,875
Bank error in charging check as $710 intead	$                540
of $170		$          2,415
		$        45,245
Deduct outstanding checks		$          6,659
Adjusted balance		$        38,586
Cash balance according to company's records		$        33,808
Add: proceeds of note collected by bank , including
$295 interest		$          6,195
		$        40,003
Deduct:check returned because of insufficient funds	$            1,213
Bank service charges	$                  24
Error in recording check(310-130)	$                180	$          1,417
Adjusted balance		$        38,586
Note:
Cash balance August 1	$          32,788
Add:cash deposited	$       139,699
Less:checks written in august	$     (138,679)
Balance per company's book	$          33,808
Ques 2
Cash	$            6,195
Notes receivable		$          5,900
Interest revenue		$              295
Accounts payable-rack pro	$                180
Accounts receivable-bay view	$            1,213
Miscellaneous expense	$                  24
cash		$          1,417
ques 3
$38,586 the adjusted balance of cash should be reported in balance sheet