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Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $13,790. The bank statement indicated a balance

Bank Reconciliation and Entries

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $13,790. The bank statement indicated a balance of $16,180 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

  1. Checks outstanding totaled $5,820.
  2. A deposit of $6,070, representing receipts of April 30, had been made too late to appear on the bank statement.
  3. The bank collected $3,160 on a $2,990 note, including interest of $170.
  4. A check for $550 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $500. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
  5. A check drawn for $50 had been erroneously charged by the bank as $500.
  6. Bank service charges for April amounted to $20.

Required:

1. Prepare a bank reconciliation.

Norwegian Medical Co.
Bank Reconciliation
April 30
Cash balance according to bank statement $fill in the blank 485f40fb501d064_1
$fill in the blank 485f40fb501d064_3
fill in the blank 485f40fb501d064_5 fill in the blank 485f40fb501d064_6
fill in the blank 485f40fb501d064_8
Adjusted balance $fill in the blank 485f40fb501d064_9
Cash balance according to company's records $fill in the blank 485f40fb501d064_10
fill in the blank 485f40fb501d064_12
$fill in the blank 485f40fb501d064_14
fill in the blank 485f40fb501d064_16 fill in the blank 485f40fb501d064_17
Adjusted balance $fill in the blank 485f40fb501d064_18

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

a. April 30 fill in the blank ca7bfef8a06cff6_2 fill in the blank ca7bfef8a06cff6_3
fill in the blank ca7bfef8a06cff6_5 fill in the blank ca7bfef8a06cff6_6
fill in the blank ca7bfef8a06cff6_8 fill in the blank ca7bfef8a06cff6_9
b. April 30 fill in the blank ca7bfef8a06cff6_11 fill in the blank ca7bfef8a06cff6_12
fill in the blank ca7bfef8a06cff6_14 fill in the blank ca7bfef8a06cff6_15
fill in the blank ca7bfef8a06cff6_17 fill in the blank ca7bfef8a06cff6_18

3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? $fill in the blank cc87d902afe3ff6_1

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