Bank reconciliation and entries Amount Descriptions Instructions Chart of Accounts Bank Reconciliation Journal Final Question Instructions The cash account for American Medical Co. at April 30 indicated a balance of $97,456. The bank statement indicated a balance of $127,960 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 $30,050. B. A deposit of $19,720, representing receipts of April 30, had been made too late to appear on the bank statement. C. The bank collected $22,149 on a $20,700 note, including interest of $1,449 D. A check for $1,450 returned with the statement had been incorrectly recorded by American Medical Co. as $145. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. E. A check drawn for $290 had been erroneously charged by the bank as $920. F. Bank service charges for April amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct." or "Add:" will automatically appear if it is required. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? CHART OF ACCOUNTS American Medical Co. General Ledger ASSETS REVENUE 410 Sales 110 Cash 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable EXPENSES 131 Notes Receivable 510 Cost of Merchandise Sold 141 Merchandise Inventory 515 Credit Card Expense 145 Office Supplies 516 Cash Short and Over 146 Store Supplies 520 Salaries Expense 151 Prepaid Insurance 531 Advertising Expense 181 Land 532 Delivery Expense 191 Office Equipment 533 Insurance Expense 192 Accumulated Depreciation-Office Equipment 534 Office Supplies Expense 193 Store Equipment 535 Rent Expense 194 Accumulated Depreciation-Store Equipment 536 Repairs Expense LIABILITIES 537 Selling Expenses 538 Store Supplies Expense 211 Accounts Payable-Targhee Supply Co. 221 Notes Payable 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 222 Interest Payable 231 Salaries Payable 590 Miscellaneous Expense 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary Amount Descriptions 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 Bank Reconciliation 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct." or "Add:" will automatically appear if it is required. Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions. AMERICAN MEDICAL CO Bank Reconciliation April 30 1Cash balance according to bank statement 2 3 4 6 Adjusted balance 7 Cash balance according to company's records 8 9 10 11 12 15 Adjusted balance Journal 2 Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. PAGE ACCOUNTING EQUATION JOURNAL DESCRIPTION POST, REF CREDIT DATE DEBIT ASSETS LIABILITIES EQUITY 1 2 4 Final Question 3 Wa balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash