Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $11.670. The bank statement indicated a balance of $13,640 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 $4,910. 2. A deposit of $5,120, representing receipts of April 30, had been made too late to appear on the bank statement. 3. The bank collected $2,660 on a $2,520 note, including interest of $140. 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 $40 had been erroneously charged by the bank as $400. 6. Bank service charges for April amounted to $50. Required: 1. Prepare a bank reconciliation. 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash