Question

First two photos helps with answer last photo

Instructions The cash account for American Medical Co. at April 30 indicated a balance of $334.985. The bank statement indicated a balance of $388,600 on April 3 Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: A. Checks outstanding totaled $61,280. B. A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement C. The bank collected $42.000 on a $40,000 note, including interest of $2.000 D. A check for $7,500 returned with the statement had been incorrectly recorded by American Medical Co, as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account E. A check drawn for $240 had been erroneously charged by the bank as $420 F. Bank service charges for April amounted to $145. Instructions 1. Prepare a bank reconciliation Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries Deductor Add: wir automatically appear if it is required

Answer 1

SOLUTION:

Cash balance according to bank statement	388,600
Add: Deposit of April 30, not recorded by bank	42,500
Add: Bank error in charging check as $420 instead of $240	180
Deduct: Outstanding checks	-61,280
Adjusted balance	370,000
Cash balance according to company's records	334,985
Add: Notes and interest collected by bank	42000
Deduct: Error in recording check	-6840
Deduct: Bank service charges	-145
Adjusted balance	370,000