Question
Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $9,650. The bank statement indicated a
Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $9,650. The bank statement indicated a balance of $10,640 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 $3,830. b. A deposit of $3,990, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,070 on a $1,970 note, including interest of $100. d. A check for $880 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $800. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $90 had been erroneously charged by the bank as $900. f. Bank service charges for April amounted to $30. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Adjusted balance Cash balance according to company's records Adjusted balance
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started