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Bank Reconciliation and Entries

The cash account for American Medical Co. at April 30 indicated a balance of $11,585. The bank statement indicated a balance of $13,380 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

1. Checks outstanding totaled $4,820.
2. A deposit of $5,020, representing receipts of April 30, had been made too late to appear on the bank statement.
3. The bank collected $2,610 on a $2,480 note, including interest of $130.
4. A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
5. A check drawn for $60 had been erroneously charged by the bank as $600.
6. Bank service charges for April amounted to $35.
7. 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.
9. 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?

The cash account for American Medical Co. at April 30 indicated a balance of $11,585. The bank statement indicated a balance of $13,380 on April 30 . Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,820. b. A deposit of $5,020, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,610 on a $2,480 note, including interest of $130, d. A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co, for a purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for April amounted to $35. Required: 1. Prepare a banic reconcitiation. 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. Fences Tonea Wrwork 2 Keep in mind that the company needs to joumaluse any adfusting tams in the company section of the bark reconclation, beckuse these have not been previously recorded by the 3. If a balance thent is grepared for American Medical Co. on Apri 30, what amount should be reported as cash? x

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