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The cash account for American Medical Co. at April 30 indicated a balance of $9,270. The bank statement indicated a balance of $10,890 on April

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The cash account for American Medical Co. at April 30 indicated a balance of $9,270. The bank statement indicated a balance of $10,890 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 $3,920. b. A deposit of $4,080, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,120 on a $2,010 note, including interest of $110. d. A check for $550 returned with the statement had been incorrectly recorded by American Medical Co. as $500. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. e. A check drawn for $30 had been erroneously charged by the bank as $300. f. Bank service charges for April amounted to $20. Required: 1. Prepare a bank reconciliation. 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. 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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