Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $11,490. The bank statement indicated a balance of $13,430 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 $4,830. b. A deposit of $5,040, representing receipts of April 30, had been made too late to appear on the bank statement. e. The bank collected $2,620 on a $2,480 note, including interest of $140. d. A check for $770 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $700. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $40 had been erroneously charged by the bank as $400. f. Bank service charges for April amounted to $40. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement 13,430 Add deposit of April 30, not recorded by bank 5,040 Add bank error in charging check as $400 instead of $40 340 5,380 Deduct outstanding checks 4,530 Adjusted balance Cash balance according to company's records Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and Interest collected by bank Deduct error in recording check Deduct bank service charges Adjusted balance QO 4830 2. Journalize the necessary entries (e) 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 b. April 30 1 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash