Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $11,075. The bank statement indicated a balance of $12,850 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 $4,630. b. A deposit of $4,820, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,510 on a $2,380 note, including interest of $130. d. 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. e. A check drawn for $50 had been erroneously charged by the bank as $500. f. Bank service charges for April amounted to $25. 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 i cili 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. a. April 30 b. April 30 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash