The cash account for American Medical Co. at April 30 indicateda balance of $97,456. The bank statement indicated a balance of$127,960 on April 30. Comparing the bank statement and theaccompanying canceled checks and memos with the records revealedthe following reconciling items:

A.	Checks outstanding totaled $30,050.
B.	A deposit of $19,720, representing receipts of April 30, hadbeen made too late to appear on the bank statement.
C.	The bank collected $22,149 on a $20,700 note, includinginterest of $1,449.
D.	A check for $1,450 returned with the statement had beenincorrectly recorded by American Medical Co. as $145. The check wasfor the payment of an obligation to Targhee Supply Co. for apurchase on account.
E.	A check drawn for $290 had been erroneously charged by the bankas $920.
F.	Bank service charges for April amounted to $40.

	Instructions
1.	Prepare a bank reconciliation. Refer to the Amount Descriptionslist provided for the exact wording of the answer choices for textentries. “Deduct:” or “Add:” will automatically appear if it isrequired.
2.	Journalize the necessary entries. The accounts have not beenclosed. Refer to the Chart of Accounts for exact wording of accounttitles.
3.	If a balance sheet is prepared for American Medical Co. on April30, what amount should be reported as cash?

CHART OF ACCOUNTS
American Medical Co.
General Ledger
ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation-Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 211 Accounts Payable-Targhee Supply Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense

Amount Descriptions
Bank error in charging check as $290 instead of $920
Bank error in charging check as $920 instead of $290
Bank service charges
Check for $920 returned because of insufficient funds
Deposit of April 30, not recorded by bank
Error in recording check
Error in recording April 30 deposit
Outstanding checks
Note and interest collected by bank

1. Prepare a bank reconciliation. Refer to the AmountDescriptions list provided for the exact wording of the answerchoices for text entries. “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.

AMERICAN MEDICAL CO.

Bank Reconciliation

April 30

1	Cash balance according to bank statement
2
3
4
5
6	Adjusted balance
7
8	Cash balance according to company’s records
9
10
11
12
13	Adjusted balance

2. Journalize the necessary entries. The accounts have not beenclosed. Refer to the Chart of Accounts for exact wording of accounttitles.

PAGE 1

JOURNAL

ACCOUNTING EQUATION

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT	ASSETS	LIABILITIES	EQUITY
1
2
3
4
5
6

. If a balance sheet is prepared for American Medical Co. onApril 30, what amount should be reported as cash?