Bank Reconciliation and Entries

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $13,280. The bank statement indicated a balance of $15,610 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 $5,620.
2. A deposit of $5,850, representing receipts of April 30, had been made too late to appear on the bank statement.
3. The bank collected $3,040 on a $2,890 note, including interest of $150.
4. 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.
5. A check drawn for $40 had been erroneously charged by the bank as $400.
6. Bank service charges for April amounted to $50.

Required:

Question Content Area

1. Prepare a bank reconciliation.

Cash balance according to bank statement		$fill in the blank ad721306901efd3_1
Add bank service chargesAdd deposit of April 30, not recorded by bankAdd error in recording checkAdd outstanding checksAdd note and interest collected by bank	$- Select -
Add bank error in charging check as $400 instead of $40Add error in recording checkAdd outstanding checksAdd note and interest collected by bankDeduct bank service charges	- Select -	- Select -
Deduct bank error in charging check as $400 instead of $40Deduct bank service chargesDeduct error in recording checkDeduct outstanding checksDeduct note and interst collected by bank		- Select -
Adjusted balance		$fill in the blank ad721306901efd3_9
Cash balance according to company's records		$fill in the blank ad721306901efd3_10
Add bank error in charging check as $400 instead of $40Add bank service chargesAdd deposit of April 30, not recorded by bankAdd error in recording checkAdd note and interest collected by bank		- Select -
Deduct bank error in charging check as $400 instead of $40Deduct deposit of April 30, not recorded by bankDeduct error in recording checkDeduct outstanding checksDeduct note and interst collected by bank	$- Select -
Deduct bank error in charging check as $400 instead of $40Deduct bank service chargesDeduct deposit of April 30, not recorded by bankDeduct outstanding checksDeduct note and interst collected by bank	- Select -	- Select -
Adjusted balance		$fill in the blank ad721306901efd3_18

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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	Accounts ReceivableCashInterest ReceivableInterest RevenueNotes Receivable
	CashInterest PayableInterest ReceivableNotes PayableNotes Receivable
	CashInterest PayableInterest ReceivableInterest RevenueNotes Payable
b. April 30	Accounts Payable-Universal Supply Co.Accounts Receivable-Universal Supply Co.CashNotes PayablePetty Cash
	CashCash Short and OverMiscellaneous ExpenseNotes PayableNotes Receivable-Universal Supply Co.
	Accounts Payable-Universal Supply Co.Accounts Receivable-Universal Supply Co.CashNotes PayablePetty Cash

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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 c77949ff4fa806d_1