InstructionsThe cash account for Norwegian Medical Co. at April 30 indicated a balance of $82,726. The bank statement indicated a balance of $128,040 on April 30. Comparing the bank statement and the accompa canceled checks and memos with the records revealed the following reconciling items:Checks outstanding totaled $34,090.A deposit of $18,430, representing receipts of April 30, had been made too late to appear on the bank statement.The bank collected $31,779 on a $29,700 note, including interest of $2,079.A check for $1,900 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $190. The check was for thepayment of an obligation to Universal Supply Co. for a purchase on account.A check drawn for $370 had been erroneously charged by the bank as $730.Bank service charges for April amounted to $55.Required 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.Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. Chart of AccountsCHART OF ACCOUNTSNorwegian Medical Co.General LedgerASSETSREVENUE110 Cash410 Sales111 Petty Cash610 Interest Revenue120 Accounts Receivable131 Notes ReceivableEXPENSES141 Merchandise Inventory510 Cost of Merchandise Sold145 Office Supplies515 Credit Card Expense146 Store Supplies516 Cash Short and Over151 Prepaid Insurance520 Salaries Expense181 Land531 Advertising Expense191 Office Equipment532 Delivery Expense192 Accumulated Depreciation-Office Equipment533 Insurance Expense193 Store Equipment534 Office Supplies Expense194 Accumulated Depreciation-Store Equipment535 Rent Expense536 Repairs ExpenseLIABILITIES537 Selling Expenses211 Accounts Payable-Universal Supply Co.538 Store Supplies Expense221 Notes Payable561 Depreciation Expense-Office Equipment222 Interest Payable562 Depreciation Expense-Store Equipment231 Salaries Payable590 Miscellaneous Expense241 Sales Tax Payable710 Interest ExpenseEQUITY310 Owner, Capital311 Owner, DrawingLabels and Amount DescriptionsLabelsApril 30For the Month Ended April 30Amount DescriptionsBank error in charging check as $370 instead of $730Bank error in charging check as $730 instead of $370Bank service chargesCheck for $730 returned because of insufficient fundsDeposit of April 30, not recorded by bankError in recording checkError in recording depositNote and interest collected by bankOutstanding checks 1. Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. "Add:" or "Deduct:" will automatically appeairequired. Enter all amounts as positive numbers.Norwegian Medical Co.Bank Reconciliation(Label)1Cash balance according to bank statement2345 Adjusted balanceCash balance according to company's records1011 Adjusted balanceJournal2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations.on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.PAGE 1JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY12345Final Question3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?$

Question

InstructionsThe cash account for Norwegian Medical Co. at April 30 indicated a balance of $82,726. The bank statement indicated a balance of $128,040 on April 30. Comparing the bank statement and the accompa canceled checks and memos with the records revealed the following reconciling items:Checks outstanding totaled $34,090.A deposit of $18,430, representing receipts of April 30, had been made too late to appear on the bank statement.The bank collected $31,779 on a $29,700 note, including interest of $2,079.A check for $1,900 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $190. The check was for thepayment of an obligation to Universal Supply Co. for a purchase on account.A check drawn for $370 had been erroneously charged by the bank as $730.Bank service charges for April amounted to $55.Required 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.Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. Chart of AccountsCHART OF ACCOUNTSNorwegian Medical Co.General LedgerASSETSREVENUE110 Cash410 Sales111 Petty Cash610 Interest Revenue120 Accounts Receivable131 Notes ReceivableEXPENSES141 Merchandise Inventory510 Cost of Merchandise Sold145 Office Supplies515 Credit Card Expense146 Store Supplies516 Cash Short and Over151 Prepaid Insurance520 Salaries Expense181 Land531 Advertising Expense191 Office Equipment532 Delivery Expense192 Accumulated Depreciation-Office Equipment533 Insurance Expense193 Store Equipment534 Office Supplies Expense194 Accumulated Depreciation-Store Equipment535 Rent Expense536 Repairs ExpenseLIABILITIES537 Selling Expenses211 Accounts Payable-Universal Supply Co.538 Store Supplies Expense221 Notes Payable561 Depreciation Expense-Office Equipment222 Interest Payable562 Depreciation Expense-Store Equipment231 Salaries Payable590 Miscellaneous Expense241 Sales Tax Payable710 Interest ExpenseEQUITY310 Owner, Capital311 Owner, DrawingLabels and Amount DescriptionsLabelsApril 30For the Month Ended April 30Amount DescriptionsBank error in charging check as $370 instead of $730Bank error in charging check as $730 instead of $370Bank service chargesCheck for $730 returned because of insufficient fundsDeposit of April 30, not recorded by bankError in recording checkError in recording depositNote and interest collected by bankOutstanding checks 1. Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. &#34;Add:&#34; or &#34;Deduct:&#34; will automatically appeairequired. Enter all amounts as positive numbers.Norwegian Medical Co.Bank Reconciliation(Label)1Cash balance according to bank statement2345 Adjusted balanceCash balance according to company's records1011 Adjusted balanceJournal2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations.on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.PAGE 1JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY12345Final Question3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?$

Accepted Answer

Introduction:
Journals:
Recording of a business transactions in a chronological order.
First step in…