Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $13,155. The bank statement indicated a balance of $15,050 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 $5,420. A deposit of $5,640, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $2,930 on a $2,780 note, including interest of $150. A check for $660 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $600. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. A check drawn for $80 had been erroneously charged by the bank as $800. Bank service charges for April amounted to $35. Required: Question Content Area 1. Prepare a bank reconciliation. Norwegian Medical Co.Bank ReconciliationApril 30 Cash balance according to bank statement $fill in the blank f6dde1fcbfc2012_1 $- Select - - Select - - Select - - Select - Adjusted balance $fill in the blank f6dde1fcbfc2012_9 Cash balance according to company's records $fill in the blank f6dde1fcbfc2012_10 - Select - $- Select - - Select - - Select - Adjusted balance $fill in the blank f6dde1fcbfc2012_18 Question Content Area 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. a. April 30 - Select - - Select - - Select - - Select - - Select - - Select - b. April 30 - Select - - Select - - Select - - Select - - Select - - Select - Question Content Area 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? $fill in the blank 42661afb107c018_1

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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Question Content Area

1. Prepare a bank reconciliation.

Norwegian Medical Co.Bank ReconciliationApril 30

Cash balance according to bank statement		$fill in the blank f6dde1fcbfc2012_1
	$- Select -
	- Select -	- Select -
		- Select -
Adjusted balance		$fill in the blank f6dde1fcbfc2012_9
Cash balance according to company's records		$fill in the blank f6dde1fcbfc2012_10
		- Select -
	$- Select -
	- Select -	- Select -
Adjusted balance		$fill in the blank f6dde1fcbfc2012_18

Question Content Area

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank.

a. April 30	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -
b. April 30	- Select -	- Select -
	- Select -	- Select -
	- Select -	- Select -

Question Content Area

3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?
$fill in the blank 42661afb107c018_1

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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