Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $14,360. The bank statement indicated a balance of $16,680 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 $6,000. b. A deposit of $6,260, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $3,250 on a $3,090 note, including interest of $160. d. A check for $770 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $700. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for April amounted to $60.

Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $14,360. The bank statement indicated a balance of $16,680 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 $6,000. b. A deposit of $6,260, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $3,250 on a $3,090 note, including interest of $160. d. A check for $770 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $700. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for April amounted to $60.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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