Bank Reconciliation and Entries

The cash account for American Medical Co. at April 30 indicated a balance of $8,845. The bank statement indicated a balance of $10,020 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 $3,610.

B. A deposit of $3,760, representing receipts of April 30, had been made too late to appear on the bank statement.

C.The bank collected $1,950 on a $1,850 note, including interest of $100.

D. A check for $660 returned with the statement had been incorrectly recorded by American Medical Co. as $600. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.

E. A check drawn for $60 had been erroneously charged by the bank as $600.

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 the bank statement

$

$

Adjusted balance $

Cash balance according to the 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

b. April 30

3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? $

Required: 1. Prepare a bank reconciliation American Medical Co. Bank Recondiliation April 30 Cash balance according to bank statement Adjusted balance Cash belance 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 b. April 30 Adjusted balance 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 cdosed. 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 balarice sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? s Bak Reconcilintion and Entries The cash account for Arnerican Medical CDnt April 30 indicated n balance of S8,845. Tr bank statement indicated balance of $10,020 on April 30. Comparing the bank statement and the accompanying canceled checks and with the records revealed the following reconciling iterns: a. Checks outstanding totaled $3,610. b. A deposit of $3,760, representing roceipts of April 30, had heen mstde too late to appeor on thet bank statement. c. The bank collected $1,950 on a $1,850 note, including interest of $100. d. A check for $660 retumed with the statement had boen incorrectiy recorcies e. A check drawn for o had been erroncously charged by the bank as S60o. f. Dank service charyes for April amounted to $25. nk colleteerumed hen ron by American Medical Co. es s600. The check was lor the payment of an obligation to Targhee Supply Co. for a purchase an account. to $25 Required: 1. Prepare a hank reconciliation. American Medical Ca. Bank Reconcilialion ril 30 halance according to bank Adjusted balance Cash balance according to company's records