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Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 Indicated a balance of $12,155. The bank statement indicated a
Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 Indicated a balance of $12,155. The bank statement indicated a balance of $13,890 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 $5,000. b. A deposit of $5,210, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,710 on a $2,570 note, including interest of $140. d. A check for $880 returned with the statement had been incorrectly recorded by American Medical Co. as $800. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. e. A check drawn for $70 had been erroneously charged by the bank as $700. f. Bank service charges for April amounted to $55. 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 0000
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