The cash account for American Medical Co. at April 30 indicated a balance of $8,935. The bank statement indicated a balance of $10,240 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconcilin items: a. Checks outstanding totaled $3,690. b. A deposit of $3,840, representing receipts of April 30, had been made too late to appear on the bank statement C. The bank collected $2,000 on a $1,890 note, including interest of $110. d. A check for $770 returned with the statement had been incorrectly recorded by American Medical Co, as $700. The check was for the payment of an obligation to Targhee Supply Co. for the purchase an account. e. A check drawn for $50 had been erroneously charged by the bank as $500. 1. Bank service charges for April amounted to $25. 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 vo Add bank error in charging check as $500 instead of $50 Deduct outstanding checks Adjusted balance Cach balance according to company's records Check My Work Next >