Bank Reconciliation and Entries The cash account for American Medical Co. at Aprl 30 indicated balance of $12.600. The hank statement indicated a balance of $14,480 on April 30. Comparing the bank statement a. Checks outstanding totaled. 5,210. b. A deposit of $5,430, representing receipts of April 30, had been made toe late to appear on the bank statement The bank collected $2,620 on a $2.60 note, including interest of S140. d. A check for $s50 returned with the statement had been incorectly recorded by American Medical Co. as $500. The check was for the payment of an obligation to Targhee Supply C A check dravm for $70 had been erreneously charged by the bank as $700. 1. Bank service charges for April amounted to $40. Required: 1. Prepare a bank reconcilation. American Hedical Co. Bank Reconciliation April 30 Cash balance according to hank statement Adjusted balance Cash balance according to company's recends Adjusted balance 2. Journalie the necessary entrnes () that increase cash and (b) that decrease cash. The accounts have not been dosed. Fer a compound transactie f an ameunt box does not re April 30 b. April 30 3. Ha balance sheet is prepared for American Medical C on April 30, hat ameunt should be reported as cash
Bank Reconciliation and Entries The cash account for American Medical Co. at Aprl 30 indicated balance of $12.600. The hank statement indicated a balance of $14,480 on April 30. Comparing the bank statement a. Checks outstanding totaled. 5,210. b. A deposit of $5,430, representing receipts of April 30, had been made toe late to appear on the bank statement The bank collected $2,620 on a $2.60 note, including interest of S140. d. A check for $s50 returned with the statement had been incorectly recorded by American Medical Co. as $500. The check was for the payment of an obligation to Targhee Supply C A check dravm for $70 had been erreneously charged by the bank as $700. 1. Bank service charges for April amounted to $40. Required: 1. Prepare a bank reconcilation. American Hedical Co. Bank Reconciliation April 30 Cash balance according to hank statement Adjusted balance Cash balance according to company's recends Adjusted balance 2. Journalie the necessary entrnes () that increase cash and (b) that decrease cash. The accounts have not been dosed. Fer a compound transactie f an ameunt box does not re April 30 b. April 30 3. Ha balance sheet is prepared for American Medical C on April 30, hat ameunt should be reported as cash
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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