1. Bank Reconciliation and Entries

   The Coins, currency (paper money), checks, money orders, and money on deposit that is available for unrestricted withdrawal from banks and other financial institutions.cash account for American Medical Co. at April 30 indicated a balance of $9,460. The A summary of all transactions mailed to the depositor or made available American by the bank each month.bank statement indicated a balance of $10,830 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 $3,900.
   2. A deposit of $4,060, representing receipts of April 30, had been made too late to appear on the bank statement.
   3. The bank collected $2,110 on a $2,000 note, including interest of $110.
   4. A check for $880 returned with the statement had been incorrectly recorded by American Medical Co. as $800. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
   5. A check drawn for $50 had been erroneously charged by the bank as $500.
   6. Bank service charges for April amounted to $50.

   Required:

   1. Prepare a bank reconciliation.

   American Medical Co.
   Bank Reconciliation
   April 30
   Cash balance according to bank statement		$
   Add bank service charges Add deposit of April 30, not recorded by bank Add error in recording check Add outstanding checks Add note and interest collected by bank	$
   Add bank error in charging check as $500 instead of $50 Add error in recording check Add outstanding checks Add note and interest collected by bank Deduct bank service charges
   Deduct bank error in charging check as $500 instead of $50 Deduct bank service charges Deduct error in recording check Deduct outstanding checks Deduct note and interst collected by bank
   Adjusted balance		$
   Cash balance according to company's records		$
   Add bank error in charging check as $500 instead of $50 Add bank service charges Add deposit of April 30, not recorded by bank Add error in recording check Add note and interest collected by bank
   Deduct bank error in charging check as $500 instead of $50 Deduct deposit of April 30, not recorded by bank Deduct error in recording check Deduct outstanding checks Deduct note and interst collected by bank	$
   Deduct bank error in charging check as $500 instead of $50 Deduct bank service charges Deduct deposit of April 30, not recorded by bank Deduct outstanding checks Deduct note and interst collected by bank
   Adjusted balance		$

   2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.

   a. April 30	Accounts Receivable Cash Interest Receivable Interest Revenue Notes Receivable
   	Cash Interest Payable Interest Receivable Notes Payable Notes Receivable
   	Cash Interest Payable Interest Receivable Interest Revenue Notes Payable
   b. April 30	Accounts Payable-Targhee Supply Co. Accounts Receivable-Targhee Supply Co. Cash Notes Payable Petty Cash
   	Cash Cash Short and Over Miscellaneous Expense Notes Payable Notes Receivable-Targhee Supply Co.
   	Accounts Payable-Targhee Supply Co. Accounts Receivable-Targhee Supply Co. Cash Notes Payable Petty Cash

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

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