Question

1. Bank Reconciliation and Entries

   The cash account for American Medical Co. at April 30 indicated a balance of $12,000. The bank statement indicated a balance of $13,580 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 $4,890.
   2. A deposit of $5,090, representing receipts of April 30, had been made too late to appear on the bank statement.
   3. The bank collected $2,650 on a $2,510 note, including interest of $140.
   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 $90 had been erroneously charged by the bank as $900.
   6. Bank service charges for April amounted to $20.

   Required:

   1. Prepare a bank reconciliation.

   American Medical Co.
   Bank Reconciliation
   April 30
   Cash balance according to bank statement		$
   	$
   Adjusted balance		$
   Cash balance according 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 a compound transaction, if an amount box does not require an entry, leave it blank.

   a. April 30
   b. April 30

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

Answer 1

please find the attachment 3 pages.