The cash account for Norwegian Medical Co. at April 30 indicated a balance of $12,500. The bank statement indicated a balance of $14,700 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 $5,290. A deposit of $5,510, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $2,870 on a $2,720 note, including interest of $150. A check for $550 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $500. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $40 had been erroneously charged by the bank as $400. Bank service charges for April amounted to $40. Required: Question Content Area 1. Prepare a bank reconciliation. Norwegian Medical Co.Bank ReconciliationApril 30 Cash balance according to bank statement $fill in the blank dda29801dfe2fe7_1 $- Select - - Select - - Select - - Select - Adjusted balance $fill in the blank dda29801dfe2fe7_9 Cash balance according to company's records $fill in the blank dda29801dfe2fe7_10 - Select - $- Select - - Select - - Select - Adjusted balance $fill in the blank dda29801dfe2fe7_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? $fill in the blank 6e00d601bfb4069_1

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 5PA

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Question Content Area

1. Prepare a bank reconciliation.

Norwegian Medical Co.Bank ReconciliationApril 30

Cash balance according to bank statement		$fill in the blank dda29801dfe2fe7_1
	$- Select -
	- Select -	- Select -
		- Select -
Adjusted balance		$fill in the blank dda29801dfe2fe7_9
Cash balance according to company's records		$fill in the blank dda29801dfe2fe7_10
		- Select -
	$- Select -
	- Select -	- Select -
Adjusted balance		$fill in the blank dda29801dfe2fe7_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?
$fill in the blank 6e00d601bfb4069_1

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