Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The cash account for American Medical Co. at April 30 indicated a balance of $11,120. The bank statement indicated a balance of $12,730 on

image text in transcribedimage text in transcribed

The cash account for American Medical Co. at April 30 indicated a balance of $11,120. The bank statement indicated a balance of $12,730 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 $4,580. b. A deposit of $4,770, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $2,480 on a $2,360 note, including interest of $120. d. A check for $880 returned with the statement had been incorrectly recorded by American Medical Co. as $800. 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 $60. Required: 1. Prepare a bank reconciliation.. American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add deposit of April 30, not recorded by bank Add error in recording check 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 Adjusted balance 10000000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

College Accounting Chapters 1-15

Authors: James Heintz

21st Edition

1285624815, 9781285624815

More Books

Students also viewed these Accounting questions

Question

3 Describe the difference between incidence and prevalence rates.

Answered: 1 week ago