0 MentSessionLocator-Sinprogress=false eBook Show Me How Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $14,675. The bank statement indicated a balance of $17,340 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 $6,240. b. A deposit of $6,500, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $3,380 on a $3,210 note, including interest of $170. d. A check for $440 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $400. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account e. A check drawn for $40 had been erroneously charged by the bank as $400. f. Bank service charges for April amounted to $55. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add deposit of April 30, not recorded by bank 6,500 6.100 Add bank error in charging check as 5400 instead of $40 Deduct outstanding checks 17,340 5.900 6,240 Adjusted balance Adjusted balance Cash balance according to company's records Add error in recording check Deduct bank error in charging check as $400 instead of $40 Deduct bank service charges Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank, a. April 30 3.300 Notes Receivable Cash Interest Revenue 3.210 170 b. April 30 Accounts Payable-Universal Supply Co. Miscellaneous Expense Cash 55 IER 100 IIC 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash