Bank Reconciliation and Entries

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $9,875. The bank statement indicated a balance of $11,140 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

Checks outstanding totaled $4,010.

A deposit of $4,180, representing receipts of April 30, had been made too late to appear on the bank statement.

The bank collected $2,170 on a $2,060 note, including interest of $110.

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.

A check drawn for $70 had been erroneously charged by the bank as $700.

Bank service charges for April amounted to $25.