Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

this is a 1 question only Instructions The cash account for American Medical Co. at April 30 indicated a balance of $85,920. The bank statement

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

this is a 1 question only

Instructions The cash account for American Medical Co. at April 30 indicated a balance of $85,920. The bank statement indicated a balance of $127,910 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 $32,540 B. A deposit of $18.540, representing rec C. The bank collected $29,425 on a $27.500 note. including interest of $1.925 D. A check for $1.350 returned with the statement had been incorrectly recorded by American Medical Co, as $135. The eipts of April 30, had been made too late to appear on the bank statement check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. E. A check drawn for $570 had been erroneously charged by the bank as $750 F. Bank sevie chargesr0 Instructions 1. Prepare a bank reconilation Rebr to the Amount Descrptions ct warding of the nswer choicesfor toxt entries Deduct:" or Add:" will automatically appear if it is required 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of a 3. If a balance sheet is prepared for American Medical Co. on Apri 30, what amount should be reported as cash? Amount Descriptions Amount Descriptions Bank error in charging check as $570 instead of $750 Bank error in charging check as $750 instead of $570 Bank service charges Check for $750 returned because of insufficient funds Deposit of April 30, not recorded by bank Error in recording check Error in recording April 30 deposit Outstanding checks Note and interest collected by bank Bank Reconciliation 1. Prepare a bank reconcilation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct" or Add:" will automatically appear if it is required Whenever there is more than one adjusting item in the bank portion of the reconciliation or the general ledger portion of the bank reconciliation, enter in the order presented in the instructions AMERICAN MEDICAL Co. Bank Reconciliation Apria 30 Cash balance according to bank statement Adjusted balance 8 Cash balance according to company's records Type here to search Cash balance according to company's records 8 10 12 13 Adjusted balance Journal 2. Joumalize the necessary entries. The accounts have not been closed Refer to the Chart of Accounts for exact wording of account titles PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITIES EQUITY Final Question 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? O Type here to search Ei

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

Step: 3

blur-text-image

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

Loss Control Auditing A Guide For Conducting Fire Safety And Security Audits

Authors: E. Scott Dunlap

1st Edition

1439828865, 978-1439828861

More Books

Students also viewed these Accounting questions

Question

Discuss the determinants of direct financial compensation.

Answered: 1 week ago