Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $9,160. The bank statement indicated a balance

image text in transcribed
image text in transcribed
image text in transcribed
Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $9,160. The bank statement indicated a balance of $10,210 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 $3,680. b. A deposit of $3,830, representing receipts of April 30, had been made too late to appear on the bank statement. C. The bank collected $1,990 on a $1,890 note, including interest of $100. d. A check for $550 returned with the statement had been incorrectly recorded by American Medical Co. as $500. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. e. A check drawn for $80 had been erroneously charged by the bank as $800. f. Bank service charges for April amounted to $20. Required: 1. Prepare a bank reconciliation. American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement American Medical Co. - Bank Reconciliation April 30 Cash balance according to bank statement Adjusted balance O JOJO OU Cash balance according to company's records 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 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 / / / / / 111 110 DII 100 b. April 30 / / / / / / 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Understanding And Conducting Information Systems Auditing

Authors: Arif Ahmed, Veena Hingarh

1st Edition

1118343743, 978-1118343746

More Books

Students also viewed these Accounting questions

Question

pH=1.2 and pH=7.4

Answered: 1 week ago