Question
The cash account for Norwegian Medical Co. at April 30 indicated a balance of $9,220. The bank statement indicated a balance of $10,620 on April
The cash account for Norwegian Medical Co. at April 30 indicated a balance of $9,220. The bank statement indicated a balance of $10,620 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $3,820. A deposit of $3,980, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $2,070 on a $1,960 note, including interest of $110. A check for $440 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $400. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $50 had been erroneously charged by the bank as $500. Bank service charges for April amounted to $20. Required: Question Content Area 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement $fill in the blank 9f980e034024fb4_1 $- Select - - Select - - Select - - Select - Adjusted balance $fill in the blank 9f980e034024fb4_9 Cash balance according to company's records $fill in the blank 9f980e034024fb4_10 - Select - $- Select - - Select - - Select - Adjusted balance $fill in the blank 9f980e034024fb4_18 Question Content Area 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. a. April 30 - Select - - Select - - Select - - Select - - Select - - Select - b. April 30 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?
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