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Norwegian Medical Co. Bank Reconciliation 1 Cash balance according to bank statement 2 3 4 5 Adjusted balance 6 7 Cash balance according to companys
Norwegian Medical Co. |
Bank Reconciliation |
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1 | Cash balance according to bank statement |
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5 | Adjusted balance |
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7 | Cash balance according to companys records |
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11 | Adjusted balance |
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Labels | |
April 30 | |
For the Month Ended April 30 | |
Amount Descriptions | |
Bank error in charging check as $680 instead of $860 | |
Bank error in charging check as $860 instead of $680 | |
Bank service charges | |
Check for $860 returned because of insufficient funds | |
Deposit of April 30, not recorded by bank | |
Error in recording check | |
Error in recording deposit | |
Note and interest collected by bank | |
Outstanding checks |
CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Norwegian Medical Co. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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The cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance of $468,460 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
a. | Checks outstanding totaled $73,870. |
b. | A deposit of $51,230, representing receipts of April 30, had been made too late to appear on the bank statement. |
c. | The bank collected $50,630 on a $48,220 note, including interest of $2,410. |
d. | A check for $9,160 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $916. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. |
e. | A check drawn for $680 had been erroneously charged by the bank as $860. |
f. | Bank service charges for April amounted to $170. |
Required: | |
1. | Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. Add: or Deduct: will automatically appear if it is required. Enter all amounts as positive numbers. |
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