Bank Reconciliation and Entries The cash account for American Medical Co, at April 30 indicated a balance of $10,390. The bank statement indicated a balance of $11,750 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 $4,230. b. A deposit of $4,410, representing receipts of April 30, had been made too late to appear on the bank statement c. The bank collected $2,290 on a $2,170 note, including interest of $120. 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 $70 had been erroneously charged by the bank as $700. f. Bank service charges for April amounted to $50. 1. Prepare a bank reconciliation American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Adjusted balance DO con 0 Cash balance according to company's records Adjusted balance 2. Journalize the necessary entries (n.) 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