Bank Reconciliation and Entries The cash account for AmericanMedical Co. at April 30 indicated a balance of $10,220. The bankstatement indicated a balance of $11,360 on April 30. Comparing thebank statement and the accompanying canceled checks and memos withthe records revealed the following reconciling items: Checksoutstanding totaled $4,090. A deposit of $4,260, representingreceipts of April 30, had been made too late to appear on the bankstatement. The bank collected $2,220 on a $2,100 note, includinginterest of $120. A check for $770 returned with the statement hadbeen incorrectly recorded by American Medical Co. as $700. Thecheck was for the payment of an obligation to Targhee Supply Co.for a purchase on account. A check drawn for $90 had beenerroneously charged by the bank as $900. Bank service charges forApril amounted to $30. Required: 1. Prepare a bank reconciliation.American Medical Co. Bank Reconciliation April 30 Cash balanceaccording to bank statement $ $ Adjusted balance $ Cash balanceaccording to company' s records $ $ Adjusted balance $ 2.Journalize the necessary entries (a.) that increase cash and (b.)that decrease cash. The accounts have not been closed. For acompound transaction, if an amount box does not require an entry,leave it blank. a. April 30 b. April 30 3. If a balance sheet isprepared for American Medical Co. on April 30, what amount shouldbe reported as cash? $