The bank statement for Farmer Co. indicates a balance of $7,735 on June 30. After the journals for June were posted, the cash account had a balance of $4,098. Prepare a bank reconciliation on the basis of the following reconciling items:

1. Cash sales of $742 were erroneously recorded in the cash receipts journal as $724.
2. Deposits in transit not recorded by bank, $425.
3. Bank debit memo for service charges, $35.
4. Bank credit memo for note collected by bank, $2,475 including $75 interest.
5. Bank debit memo for $256 NSF (not sufficient funds) check from Janice Smith, a customer.
6. Checks outstanding, $1,860.

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $93,115. The bank statement indicated a balance of $125,800 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 $30,060.
b.	A deposit of $19,240, representing receipts of April 30, had been made too late to appear on the bank statement.
c.	The bank collected $24,075 on a $22,500 note, including interest of $1,575.
d.	A check for $1,800 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $180. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
e.	A check drawn for $390 had been erroneously charged by the bank as $930.
f.	Bank service charges for April amounted to $50.

	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.
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
3.	If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?