Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $8,855. The bank statement indicated a balance of $9,890 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 $3,560. A deposit of $3,710, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $1,930 on a $1,830 note, including interest of $100. A check for $880 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $800. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $70 had been erroneously charged by the bank as $700. Bank service charges for April amounted to $35. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement $fill in the blank 3f07fafe7fdafb5_1 Add deposit of April 30, not recorded by bank $fill in the blank 3f07fafe7fdafb5_3 fill in the blank 3f07fafe7fdafb5_5 fill in the blank 3f07fafe7fdafb5_6 fill in the blank 3f07fafe7fdafb5_8 Adjusted balance $fill in the blank 3f07fafe7fdafb5_9 Cash balance according to company's records $fill in the blank 3f07fafe7fdafb5_10 fill in the blank 3f07fafe7fdafb5_12 $fill in the blank 3f07fafe7fdafb5_14 fill in the blank 3f07fafe7fdafb5_16 fill in the blank 3f07fafe7fdafb5_17 Adjusted balance $fill in the blank 3f07fafe7fdafb5_18 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 fill in the blank c2ca0c04afaaf88_2 fill in the blank c2ca0c04afaaf88_3 fill in the blank c2ca0c04afaaf88_5 fill in the blank c2ca0c04afaaf88_6 fill in the blank c2ca0c04afaaf88_8 fill in the blank c2ca0c04afaaf88_9 b. April 30 fill in the blank c2ca0c04afaaf88_11 fill in the blank c2ca0c04afaaf88_12 fill in the blank c2ca0c04afaaf88_14 fill in the blank c2ca0c04afaaf88_15 fill in the blank c2ca0c04afaaf88_17 fill in the blank c2ca0c04afaaf88_18 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? $fill in the blank b73810f93050fd4_1

Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $8,855. The bank statement indicated a balance of $9,890 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 $3,560. A deposit of $3,710, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $1,930 on a $1,830 note, including interest of $100. A check for $880 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $800. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $70 had been erroneously charged by the bank as $700. Bank service charges for April amounted to $35. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement $fill in the blank 3f07fafe7fdafb5_1 Add deposit of April 30, not recorded by bank $fill in the blank 3f07fafe7fdafb5_3 fill in the blank 3f07fafe7fdafb5_5 fill in the blank 3f07fafe7fdafb5_6 fill in the blank 3f07fafe7fdafb5_8 Adjusted balance $fill in the blank 3f07fafe7fdafb5_9 Cash balance according to company's records $fill in the blank 3f07fafe7fdafb5_10 fill in the blank 3f07fafe7fdafb5_12 $fill in the blank 3f07fafe7fdafb5_14 fill in the blank 3f07fafe7fdafb5_16 fill in the blank 3f07fafe7fdafb5_17 Adjusted balance $fill in the blank 3f07fafe7fdafb5_18 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 fill in the blank c2ca0c04afaaf88_2 fill in the blank c2ca0c04afaaf88_3 fill in the blank c2ca0c04afaaf88_5 fill in the blank c2ca0c04afaaf88_6 fill in the blank c2ca0c04afaaf88_8 fill in the blank c2ca0c04afaaf88_9 b. April 30 fill in the blank c2ca0c04afaaf88_11 fill in the blank c2ca0c04afaaf88_12 fill in the blank c2ca0c04afaaf88_14 fill in the blank c2ca0c04afaaf88_15 fill in the blank c2ca0c04afaaf88_17 fill in the blank c2ca0c04afaaf88_18 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? $fill in the blank b73810f93050fd4_1

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter6: Cash And Internal Control

Section: Chapter Questions

Problem 6.1AP

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Bank Reconciliation and Entries

The cash account for Norwegian Medical Co. at April 30 indicated a balance of $8,855. The bank statement indicated a balance of $9,890 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 $3,560.
A deposit of $3,710, representing receipts of April 30, had been made too late to appear on the bank statement.
The bank collected $1,930 on a $1,830 note, including interest of $100.
A check for $880 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $800. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
A check drawn for $70 had been erroneously charged by the bank as $700.
Bank service charges for April amounted to $35.

Required:

1. Prepare a bank reconciliation.

Norwegian Medical Co.
Bank Reconciliation
April 30
Cash balance according to bank statement		$fill in the blank 3f07fafe7fdafb5_1
Add deposit of April 30, not recorded by bank	$fill in the blank 3f07fafe7fdafb5_3
	fill in the blank 3f07fafe7fdafb5_5	fill in the blank 3f07fafe7fdafb5_6
		fill in the blank 3f07fafe7fdafb5_8
Adjusted balance		$fill in the blank 3f07fafe7fdafb5_9
Cash balance according to company's records		$fill in the blank 3f07fafe7fdafb5_10
		fill in the blank 3f07fafe7fdafb5_12
	$fill in the blank 3f07fafe7fdafb5_14
	fill in the blank 3f07fafe7fdafb5_16	fill in the blank 3f07fafe7fdafb5_17
Adjusted balance		$fill in the blank 3f07fafe7fdafb5_18

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	fill in the blank c2ca0c04afaaf88_2	fill in the blank c2ca0c04afaaf88_3
	fill in the blank c2ca0c04afaaf88_5	fill in the blank c2ca0c04afaaf88_6
	fill in the blank c2ca0c04afaaf88_8	fill in the blank c2ca0c04afaaf88_9
b. April 30	fill in the blank c2ca0c04afaaf88_11	fill in the blank c2ca0c04afaaf88_12
	fill in the blank c2ca0c04afaaf88_14	fill in the blank c2ca0c04afaaf88_15
	fill in the blank c2ca0c04afaaf88_17	fill in the blank c2ca0c04afaaf88_18

3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?
$fill in the blank b73810f93050fd4_1

Expert Solution

Step 1

Bank reconciliation statement: This statement shows the deposits, withdrawals and other charges and receipts during the period. It is a statement which reconciles a company’s bank account with the balance recorded in its financial statements.

Journal entry: It is also called as book of original entry. All financial transactions occurred in a business are recorded using the journal entry. The journal entry is recorded in the order in which a financial transaction happens and for every entry a debit and a credit for an equal amount is recorded.

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