My Home v2.cengagenow.com CengageNOWv2 Online teaching and leaming resource from Cengage Lig bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $10,775. The bank statement indicated a balance of $12.330 on April 30, Comparing the bank statement and the accompanying canceled checks and memes with the records revealed the following reconciling items a. Checks outstanding totaled $4,440. b. A deposit of $4,620, representing receipts of April 30, had been made too late to appear on the bank statement c. The bank collected $2,400 on a $2,280 note, including interest of $120. d. A check for $770 returned with the statement had been incorrectly recorded by American Medical Ca as $700. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for April amounted to $55. Required: 1. Prepare a bank reconciliation. 16:28 American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add deposit of April 30, not recorded by bank Add bank error in charging check as $600 instead of $0 Deduct outstanding checks Adjusted balance Cash balance according to company's records Add note and interest collected by bank Deduct error in recording check Deduct bank service charges 3 # 54 95 All work saved A 16 & 59 7 00000000 8-> B ( 6 1 0 P Previous St Agent for Grading +11 = delete D v2.cengagenow.com 00 CengageNOWv2 | Online teaching and learning resource from Cengage Learning balance according to bank statement deposit of April 30, not recorded by bank dbank error in charging check as $600 instead of $60 duct outstanding checks justed balance ash balance according to company's records dd note and interest collected by bank Deduct error in recording check Deduct bank service charges Adjusted balance 00 000000 10 2. Journalize the necessary entries (a.) that increase cash and (b) that decrease cash. The accounts have not been closed. For a compound transaction, fan amount box does not require an entry, leave it blank a. April 30: 3. If a balance sheet is prepared for American Medical Co, on April 30, what amount should be reported as cau b. April 30 06:16 # 43 All work seved % 85 A 6 $ 54 R E &7 00 8 T Y U Previou St Age for Grading ( 1 6 - 0 0 P @ +11 .. 2