Bank Reconciliation and Entries

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $11,295. The bank statement indicated a balance of $13,000 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 $4,680.
2. A deposit of $4,880, representing receipts of April 30, had been made too late to appear on the bank statement.
3. The bank collected $2,540 on a $2,410 note, including interest of $130.
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 $60 had been erroneously charged by the bank as $600.
6. Bank service charges for April amounted to $25.

1. 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 30th Cash _____ _______

Notes Receivable _____ _______

Interest Revenue _____ _______

b. April 30th. Accounts Payable- Universal Supply Co. _____ _______

Miscellaneous Expense _____ _______

Cash _____ _______

2. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?