Bank Reconciliation and Entries The cash account for American Medical Co.at April 30 indicated a balance of $12,230. The bank statement indicated a balance of $13,930 on April 30. Comparing the bank statement and the accompanying canceled checks and memes with the records revealed the following reconciling Items: a. Cheds outstanding totaled $5,010. b. A deposit of $5,220, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,720 on a $2,580 note, induding interest of $140. d. A check for $550 returned with the statement had been incorrectly recorded by American Medical Ca. as $500. The check was for the payment of an obligation Targhee Supply Co. for a purchase on account. e. Acheck drawn for $90 had been erroneously charged by the bank as $900. t. Bank service charges for April amounted to $40. Required: $ 13,930 1. Prepare a bank reconciliation American Medical Co Bank Reconciliation April 30 Cash balance according to bank statement Add deposit of April 30, not recorded by bank Add bank error in charging check as $800 instead of $80. Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank - Deduct error in recording check Deduct bank service charges lio vitin Adjusted balance 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. 2. April 30 Cash Notes Receivable Interest Revenue UD LCD M1 01 b. April 30 Accounts Payable-Targhee Supply Co. Cash