The cash account for Norwegian Medical Co. at April 30 indicated a balance of $84,457. The bank statement indicated a balance of $127,190 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 $33,310.
b.	A deposit of $17,610, representing receipts of April 30, had been made too late to appear on the bank statement.
c.	The bank collected $28,248 on a $26,400 note, including interest of $1,848.
d.	A check for $1,100 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $110. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
e.	A check drawn for $680 had been erroneously charged by the bank as $860.
f.	Bank service charges for April amounted to $45.

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?

CHART OF ACCOUNTS

Norwegian Medical Co.

General Ledger

	ASSETS
110	Cash
111	Petty Cash
120	Accounts Receivable
131	Notes Receivable
141	Merchandise Inventory
145	Office Supplies
146	Store Supplies
151	Prepaid Insurance
181	Land
191	Office Equipment
192	Accumulated Depreciation-Office Equipment
193	Store Equipment
194	Accumulated Depreciation-Store Equipment

	LIABILITIES
211	Accounts Payable-Universal Supply Co.
221	Notes Payable
222	Interest Payable
231	Salaries Payable
241	Sales Tax Payable

	EQUITY
310	Owner, Capital
311	Owner, Drawing

LabelsApril 30For the Month Ended April 30Amount DescriptionsBank error in charging check as $680 instead of $860Bank error in charging check as $860 instead of $680Bank service chargesCheck for $860 returned because of insufficient fundsDeposit of April 30, not recorded by bankError in recording checkError in recording depositNote and interest collected by bankOutstanding checks

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.

Norwegian Medical Co.

Bank Reconciliation

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.

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JOURNAL

ACCOUNTING EQUATION

	DATE

3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?

	REVENUE
410	Sales
610	Interest Revenue

	EXPENSES
510	Cost of Merchandise Sold
515	Credit Card Expense
516	Cash Short and Over
520	Salaries Expense
531	Advertising Expense
532	Delivery Expense
533	Insurance Expense
534	Office Supplies Expense
535	Rent Expense
536	Repairs Expense
537	Selling Expenses
538	Store Supplies Expense
561	Depreciation Expense-Office Equipment
562	Depreciation Expense-Store Equipment
590	Miscellaneous Expense
710	Interest Expense