Accounting 27th Edition, page 431 problem 8-3A

PR 8-3A Bank reconciliation and entries OBJ. 5 1. Adjusted balance: The cash account for American Medical Co. at April 30 indicated a balance of $334,985 $370,000 The bank statement indicated a balance of $388,600 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 $61,280 b. A deposit of $42,500, representing receipts of April 30, had been made too late to Excel appear on the bank statement c. The bank collected $42,000 on a $40,000 note, including interest of $2,000 d. A check for $7,600 returned with the statement had been incorrectly recorded by General Ledger American Medical Co. as $760. The check was for the payment of an obligation to Show Me How Targhee Supply Co. for a purchase on account e. A check drawn for $240 had been erroneously charged by the bank as $420 f. Bank service charges for April amounted to $145 Instructions 1. Prepare a bank reconciliation 2. Journalize the necessary entries. The accounts have not been closed 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash