1. Prepare a bank reconciliation. American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add note and interest collected by bank Adjusted balance $ Cash balance according to company's records Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. а. April 30 ь. Арril 30 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
1. Prepare a bank reconciliation. American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add note and interest collected by bank Adjusted balance $ Cash balance according to company's records Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. а. April 30 ь. Арril 30 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter5: Internal Control And Cash
Section: Chapter Questions
Problem 5.21E
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Question
Bank Reconciliation and Entries
The cash account for American Medical Co. at April 30 indicated a balance of $11,630. The bank statement indicated a balance of $13,480 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 $4,850.
- A deposit of $5,060, representing receipts of April 30, had been made too late to appear on the bank statement.
- The bank collected $2,630 on a $2,490 note, including interest of $140.
- A check for $770 returned with the statement had been incorrectly recorded by American Medical Co. as $700. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
- A check drawn for $50 had been erroneously charged by the bank as $500.
- Bank service charges for April amounted to $50.
Required:
1. Prepare a bank reconciliation.
American Medical Co. |
Bank Reconciliation |
April 30 |
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