Instructions The cash account to American Medical Co. Apr 30 indicated a balance of $334,905. The book statement indicated a balurce of 5388.800 on April 30. Comparing the bank statement and the accompanying careed checks and menos with the records revealed the following reconcilingiems A. Check outstanding totaled $61,280 3. Adeposit of $12.500, representing receipt of April 30, had been made too late to appear on the bank element G. The bank collected $42.000 on a $40.000 not including interest of $2,000 D. A check for $7.000 ratuned with the statement had been incorrectly recorded by American Medical Cos $70. The check was for the Dayment of antigation to The Boy Co. for a purchase on count E. A check drawn for 240 had been erroneously charged by the bank as $420 F. Bank service charges for pri mounted to $145. Instructions 1. Prepare a bank reconollation Pater to the Amount Descriptions to provided for the exact wording of the war choices for test entries Deduct" or "Add" will automatically appear it is required 2. Journaire the necessary entries. The accounts have not been closed. Refer to the Churt of Accounts for exact wording of accounts 3. a balance sheet is prepared for American Medical Co. on Apr 30, what amount sould be reported as cash? Bank Reco astructions Chart of Accounts Amount Descriptions structions Chart of Accounts General Ledger wit REVENUE ASSETS 410 Sales 110 Cash 610 Interest Revenue 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment EXPENSES 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense AS of Accounts 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation-Store Equipment LIABILITIES 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense 211 Accounts Payable-Targhee Supply Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable EQUITY 310 Owner, Capital 311 Owner, Drawing 312 Income Summary ons Chart or s of Accounts Amount Descriptions Amount Descriptions Bank error in charging check as $240 instead of $420 Bank error in charging check as $420 instead of $240 Bank service charges Check for $420 returned because of insufficient funds Deposit of April 30, not recorded by bank Error in recording check Error in recording April 30 deposit Outstanding checks Note and interest collected by bank Score: 17/87 TH wi AMERICAN MEDICAL CO. Bank Reconciliation April 30 1 Cash balance according to bank statement 2 Add: Deposit of April 30, not recorded by bank 3 Bank error in charging check as $420 instead of $240 $388,600.00 180.00 $61,280.00 4 5 $370,000.00 6 Adjusted balance 7 # Cash balance according to company's records 9 10 11 12 15 Adjusted balance Check My Work 2. Joumalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles Question not attempted PAGE 1 JOURNAL Score: 0/75 ACCOUNTING EQUATION DATE DESCRIPTION POST REF DEBIT CREDIT ASSETS LIABILITIES EQUITY 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? $ Points: 0/1
