Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $13,160. The bank statement indicated a balance of $15,520 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 $5,590. A deposit of $5,820, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $3,030 on a $2,870 note, including interest of $160. A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. A check drawn for $40 had been erroneously charged by the bank as $400. Bank service charges for April amounted to $40. Required: 1. Prepare a bank reconciliation. American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement $fill in the blank 3c85c8ff0f87052_1 Add deposit of April 30, not recorded by bank $fill in the blank 3c85c8ff0f87052_3 Add error in recording check fill in the blank 3c85c8ff0f87052_5 fill in the blank 3c85c8ff0f87052_6 fill in the blank 3c85c8ff0f87052_8 Adjusted balance $fill in the blank 3c85c8ff0f87052_9 Cash balance according to company's records $fill in the blank 3c85c8ff0f87052_10 fill in the blank 3c85c8ff0f87052_12 $fill in the blank 3c85c8ff0f87052_14 fill in the blank 3c85c8ff0f87052_16 fill in the blank 3c85c8ff0f87052_17 Adjusted balance $fill in the blank 3c85c8ff0f87052_18 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. April 30 Cash fill in the blank 64591801bfa100c_2 fill in the blank 64591801bfa100c_3 fill in the blank 64591801bfa100c_5 fill in the blank 64591801bfa100c_6 fill in the blank 64591801bfa100c_8 fill in the blank 64591801bfa100c_9 b. April 30 fill in the blank 64591801bfa100c_11 fill in the blank 64591801bfa100c_12 fill in the blank 64591801bfa100c_14 fill in the blank 64591801bfa100c_15 fill in the blank 64591801bfa100c_17 fill in the blank 64591801bfa100c_18 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? $fill in the blank e116c7fc5fbc06f_1

Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $13,160. The bank statement indicated a balance of $15,520 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 $5,590. A deposit of $5,820, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $3,030 on a $2,870 note, including interest of $160. A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. A check drawn for $40 had been erroneously charged by the bank as $400. Bank service charges for April amounted to $40. Required: 1. Prepare a bank reconciliation. American Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement $fill in the blank 3c85c8ff0f87052_1 Add deposit of April 30, not recorded by bank $fill in the blank 3c85c8ff0f87052_3 Add error in recording check fill in the blank 3c85c8ff0f87052_5 fill in the blank 3c85c8ff0f87052_6 fill in the blank 3c85c8ff0f87052_8 Adjusted balance $fill in the blank 3c85c8ff0f87052_9 Cash balance according to company's records $fill in the blank 3c85c8ff0f87052_10 fill in the blank 3c85c8ff0f87052_12 $fill in the blank 3c85c8ff0f87052_14 fill in the blank 3c85c8ff0f87052_16 fill in the blank 3c85c8ff0f87052_17 Adjusted balance $fill in the blank 3c85c8ff0f87052_18 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. April 30 Cash fill in the blank 64591801bfa100c_2 fill in the blank 64591801bfa100c_3 fill in the blank 64591801bfa100c_5 fill in the blank 64591801bfa100c_6 fill in the blank 64591801bfa100c_8 fill in the blank 64591801bfa100c_9 b. April 30 fill in the blank 64591801bfa100c_11 fill in the blank 64591801bfa100c_12 fill in the blank 64591801bfa100c_14 fill in the blank 64591801bfa100c_15 fill in the blank 64591801bfa100c_17 fill in the blank 64591801bfa100c_18 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? $fill in the blank e116c7fc5fbc06f_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

Bank Reconciliation and Entries

The cash account for American Medical Co. at April 30 indicated a balance of $13,160. The bank statement indicated a balance of $15,520 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 $5,590.
A deposit of $5,820, representing receipts of April 30, had been made too late to appear on the bank statement.
The bank collected $3,030 on a $2,870 note, including interest of $160.
A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account.
A check drawn for $40 had been erroneously charged by the bank as $400.
Bank service charges for April amounted to $40.

Required:

1. Prepare a bank reconciliation.

American Medical Co.
Bank Reconciliation
April 30
Cash balance according to bank statement		$fill in the blank 3c85c8ff0f87052_1
Add deposit of April 30, not recorded by bank	$fill in the blank 3c85c8ff0f87052_3
Add error in recording check	fill in the blank 3c85c8ff0f87052_5	fill in the blank 3c85c8ff0f87052_6
		fill in the blank 3c85c8ff0f87052_8
Adjusted balance		$fill in the blank 3c85c8ff0f87052_9
Cash balance according to company's records		$fill in the blank 3c85c8ff0f87052_10
		fill in the blank 3c85c8ff0f87052_12
	$fill in the blank 3c85c8ff0f87052_14
	fill in the blank 3c85c8ff0f87052_16	fill in the blank 3c85c8ff0f87052_17
Adjusted balance		$fill in the blank 3c85c8ff0f87052_18

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

a. April 30	Cash	fill in the blank 64591801bfa100c_2	fill in the blank 64591801bfa100c_3
		fill in the blank 64591801bfa100c_5	fill in the blank 64591801bfa100c_6
		fill in the blank 64591801bfa100c_8	fill in the blank 64591801bfa100c_9
b. April 30		fill in the blank 64591801bfa100c_11	fill in the blank 64591801bfa100c_12
		fill in the blank 64591801bfa100c_14	fill in the blank 64591801bfa100c_15
		fill in the blank 64591801bfa100c_17	fill in the blank 64591801bfa100c_18

3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
$fill in the blank e116c7fc5fbc06f_1

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