Bank Reconciliation and Entries

The cash account for American Medical Co. at April 30 indicated a balance of $11,320. The bank statement indicated a balance of $13,120 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 $4,720.
2. A deposit of $4,920, representing receipts of April 30, had been made too late to appear on the bank statement.
3. The bank collected $2,560 on a $2,430 note, including interest of $130.
4. A check for $770 returned with the statement had been incorrectly recorded by American Medical Co. as $700. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
5. A check drawn for $50 had been erroneously charged by the bank as $500.
6. Bank service charges for April amounted to $40.

Required:

1. Prepare a bank reconciliation.