Question
Bank Reconciliation and Entries The cash account for American Medical Co, at April 30 indicated a balance of $14.250. The hank statement indicated a balance
Bank Reconciliation and Entries The cash account for American Medical Co, at April 30 indicated a balance of $14.250. The hank statement indicated a balance of $16.940 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 $6,100. b. A deposit of $6,350, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $3.300 on a $3,130 note, including interest of $170. d. A check for $660 returned with the statement had been incorrectly recorded by American Medical Co. as 1600. The check was for the payment of an obligation to Targhe Supply Co. for a purcha e. A check drawn for $30 had been erroneously charged try the bank as $300. f. Bank service charges for April amounted to $30. Required 1. Prepare a bank reconciliation. American Hedical Co Bank Reconciliation April 30 Cash balance according to bank statement Adjusted balance Cash balance according to company's reconds Aduated balance 2. Journalize the necessary entries (a) that increase cash and to that decrease cash. The accums have been closed. For a comasund transaction, fanart WANG T St April 30 444 444 2. Journalize the necessary untries (e) that increase cash and (b) that decrease cash. The scums has not been closed for a compound traction if an at bee does not eas a. April 30 fa balance sheet is prepared for American Medical Cons 30. dec
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started