Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $12,690. The bank statement indicated a balance of $14,720 on Apnil 30. Comparing the bank statement and the accompanying canceled checks and memos ith the records revealed the following reconciling items a. Checks outstanding totaled $5,300. b. A deposit of $5,520, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,870 on a $2,720 note, including interest of $150 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 $20 Required: 1. Prepare a bank reconciliation American Medical Co. Bank Reconciliation 130 Cash balance according to bank statement 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 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