Question

Bank reconciliation and entries Amount Descriptions Instructions Chart of Accounts Bank Reconciliation Journal Final Question Instructions The cash account for American Medical Co. at April 30 indicated a balance of $97,456. The bank statement indicated a balance of $127,960 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 $30,050. B. A deposit of $19,720, representing receipts of April 30, had been made too late to appear on the bank statement. C. The bank collected $22,149 on a $20,700 note, including interest of $1,449 D. A check for $1,450 returned with the statement had been incorrectly recorded by American Medical Co. as $145. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. E. A check drawn for $290 had been erroneously charged by the bank as $920. F. Bank service charges for April amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Deduct." or "Add:" will automatically appear if it is required. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?

Answer 1

Rea 1 AMERICAN MEDICAL CO Bonk Reconciliation APl 30 cash balane according to Bonk statement 127960 Add: DepOSitOf Apanl 30, not aeco sdled by bonk 2 Add: Bonkesor in chasgiag check as Fa20 3 630 203S0 instead of F 290 148310 30050 18260 5 Deduct : oUts tandi Adjusted B0lance che ck cash balance accoseliy to componvs ae cosds Add: Proceeds of note, coll ecled 6t6onk, int 4 F456 22149 19605 10 peduct: E0S000 00 coadiy cheCk 1305 12 peduct: (1345) BOnk serv Ce chage 40 Adjusted Balance 13 T 18260

Rea 2 Journai Ent Date ACCount Name edit Debit APnle0 c sh 1 22I49 TO NOte Recaivable $ 2070O 3 1449 TO Jnteaest RevenUe 4. APlceo Ac Counts payable -Taghee co. 130S Miscellane ou s EXPense 40 TO Cash 1345 ACCOuntiy quation ASSet Iiability Fauity cash InCrea se + 22149 EauiNIncsease + 1449 NOte ReCeivable: Deoease 20 700 cash De creaise 134S 1305 Eauiy: Dersease Decrease 40 T 13 260