The cash account for American 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 American Medical Co. as $110. The check was for the payment of an obligation to Targhee 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.

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Asked Nov 25, 2019
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The cash account for American 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 American Medical Co. as $110. The check was for the payment of an obligation to Targhee 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.
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Expert Answer

Step 1

Bank reconciliation:

Bank statement is prepared by bank. The company maintains its own records from its perspective. This is why the cash balance per bank and cash balance per books seldom ...

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