The cash account for American Medical Co. at April 30 indicateda balance of $334,985. The bank statement indicated a balance of$388,600 on April 30. Comparing the bank statement and theaccompanying canceled checks and memos with the records revealedthe following reconciling items:

A.	Checks outstanding totaled $61,280.
B.	A deposit of $42,500, representing receipts of April 30, hadbeen made too late to appear on the bank statement.
C.	The bank collected $42,000 on a $40,000 note, includinginterest of $2,000.
D.	A check for $7,600 returned with the statement had beenincorrectly recorded by American Medical Co. as $760. The check wasfor the payment of an obligation to Targhee Supply Co. for apurchase on account.
E.	A check drawn for $240 had been erroneously charged by the bankas $420.
F.	Bank service charges for April amounted to $145.

	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. onApril 30, what amount should be reported as cash?