bank reconciliation and entries

the cash account for remedy Medical Co. at April 30, 2014, indicated a balance of $18,885. The bank statement indicated a balance of $23,775 on April 30, 2014. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

A. checks outstanding totaled $ 7840.

B. A deposit of $3580, represending receipts of April 30, had been made too appear on the bank statement.

c. The bank collected $3780 on a note left for collection. The face of note was $ 3600.

d. A check for $770 returned with the statement had been incorrectly recorded by Remedy Medical Co. as $700. The check was for the payment of an obligation to Copelin Co. for a purchase on account.

E, A check drawn for $ 330. had been erroneously charged by the bank as $3,300.

F. Bank service charges for April amounted to $110.

Reqired:

1, Perpare a bank reconciliation

Remedy Medical Co.

Bank Reconciliation

April 30, 2014

Cash balance according to bank statement _________________

Add bank error in charging check ____________ _____________

_____________

Deduc outstanding checks _________________

Adjusted Balance _________________

Cash balance according to company's records _________________

Add proceeds of note collected by bank............. _________________

_______________

Deduct error in recording............ _____________

Deduct bank service charges _____________ ________________

Adjust balance ________________

2. Jpurnalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transation,

A. _________ __________ ____________

_________ __________ ____________

__________ __________ ______________

B. _____________ ___________ ______________

___________ ___________ ______________

____________ ___________ ________________

3. If a balance sheet were prepared for Remedy Medical Co. on April 30, 2014 what amount should be reported as cash _________?