The cashcoins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions. to simplify, this chapter assumes that a company has only one bank account, which is identified in the ledger as "cash."account for coastal bike co. at october 1, 20y9, indicated a balance of $5,140. during october, the total cash deposited was $39,175, and checks written totaled $40,520. the bank statementa summary of all transactions mailed to the depositor or made available online by the bank each month. indicated a balance of $8,980 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 $5,560.b. a deposit of $1,050 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. $2,120 on a note left for collection. the face of the note was $2,000.d. a check for $370 returned with the statement had been incorrectly charged by the bank as $730.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 $25.g. a check for $880 from bay view condos was returned by the bank due to insufficient funds. instructions1. prepare a bank reconciliation as of october 31, 20y9. refer to the amount descriptions list provided for the exact wording of the answer choices for text entries. for those boxes in which you must enter subtracted or negative numbers use a minus sign.2. journalize the necessary entries. refer to the chart of accounts for exact wording of account titles.3. if a balance sheet were prepared for coastal bike co. on october 31, 20y9, what amount should be reported as cash? 1. prepare a bank reconciliation as of october 31, 20y9. refer to the amount descriptions list provided for the exact wording of the answer choices for text entries. for those boxes in which you must enter subtracted or negative numbers use a minus sign. question not attempted. score: 7/108coastal bike co. bank reconciliationoctober 31, 20y91cash balance according to bank statement2adjustments: 3✔4✔bank error in charging check as $730 instead of $370 56789cash balance according to company’s records10adjustments: 111213141516solutioncoastal bike co. bank reconciliationoctober 31, 20y91cash balance according to bank statement2adjustments: 3456789cash balance according to company’s records10adjustments: 111213141516points: 1.56 / 24feedbackcheck my workset up two sections: one for the company cash account section and the other for the bank balance section. determine the effect of the data on each section. recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. if not, an item has been overlooked or treated in error. recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation.2. journalize the necessary entries. refer to the chart of accounts for exact wording of account titles. question not attempted. page 1journalaccounting equationscore: 0/87date description post. ref. debit credit assets liabilities equity1234567solutiondate description post. ref. debit credit assets liabilities equity1234567points: 0 / 16feedbackcheck my workkeep in mind that the company needs to journalize any adjusting items in the company section of the bank reconciliation, because these have not been previously recorded by the company. debit memo items like bank service charges decrease cash. items that come from credit memos like collections of notes or interest by the bank increase cash. if the company made an error that overstates or understates cash in the company section, the journal adjustment would decrease cash or increase cash, respectively.3. if a balance sheet were prepared for coastal bike co. on october 31, 20y9, what amount should be reported as cash? points: 0 / 1feedbackcheck my workset up two sections: one for the company cash account section and the other for the bank balance section. determine the effect of the data on each section. recall that when you are finished, the adjusted balances in the bank and company sections of the reconciliation must be equal. if not, an item has been overlooked or treated in error. recall that the company's cash account balance is updated for any items in the company section of the bank reconciliation.