cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance of $468,460 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 $73,870.b.A deposit of $51,230, representing receipts of April 30, had been made too late to appear on the bank statement.c.The bank collected $50,630 on a $48,220 note, including interest of $2,410.d.A check for $9,160 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $916. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.e.A check drawn for $680 had been erroneously charged by the bank as $860.f.Bank service charges for April amounted to $170. Required:1.Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Add:” or “Deduct:” will automatically appear if it is required. Enter all amounts as positive numbers.2.Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.3.If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? **Bank Reconciliation for Norwegian Medical Co.****Bank Statement:**- **Cash balance according to bank statement:** $468,460.00 - **Add: Deposit of April 30, not recorded by bank:** $51,320.00- **Outstanding checks:** $7,870.00- **Deduct: Bank error in charging check as $860 instead of $680:** $180.00 - **Adjusted balance:** $124,920.00 **Company Records:**- **Cash balance according to company's records:** $403,784.00- **Add: Note and interest collected by bank:** $6,095.00- **Deduct: Bank error in charging check as $860 instead of $680:** $180.00- **Bank service charges:** $170.00- **Adjusted balance:** $409,525.00 **Journal Entries:**| **Date** | **Description** | **Post. Ref.** | **Debit** | **Credit** | **Accounting Equation** ||-----------|-------------------------------------------|----------------|------------|------------|------------------------------------|| Apr. 30 | Cash | | $50,650.00 | | ! || | Notes Receivable | | | 2,410.00 | || | Interest Revenue | | | 2,410.00 | ! || | Accounts Payable-Universal Supply Co. | | 8,244.00 | | ! || | Miscellaneous Expense | | 170.00 | | || | Cash | | | 170.00 | ! |**Instructions:**- Journalize the necessary entries. Use the chart of accounts for exact account titles. Each line in the journal page is dedicated to either debit or credit entries. Indent a credit entry automatically when entered.**Progress:**- 2/3 items completed- Assignment Score: 84.91% _End of Record._ ### General Ledger OverviewThis text provides a detailed view of a general ledger structure, categorizing various elements under Assets, Liabilities, Equity, Revenue, and Expenses. Below is a breakdown of these categories:#### Assets1. **110 Cash**2. **111 Petty Cash**3. **120 Accounts Receivable**4. **121 Notes Receivable**5. **141 Merchandise Inventory**6. **145 Office Supplies**7. **146 Store Supplies**8. **151 Prepaid Insurance**9. **181 Land**10. **191 Office Equipment**11. **192 Accumulated Depreciation-Office Equipment**12. **193 Store Equipment**13. **194 Accumulated Depreciation-Store Equipment**#### Liabilities1. **211 Accounts Payable-Universal Supply Co.**2. **221 Notes Payable**3. **222 Interest Payable**4. **231 Salaries Payable**5. **241 Sales Tax Payable**#### Equity1. **310 Owner, Capital**2. **311 Owner, Drawing**#### Revenue1. **410 Sales**2. **610 Interest Revenue**#### Expenses1. **510 Cost of Merchandise Sold**2. **515 Credit Card Expense**3. **516 Cash Short and Over**4. **520 Salaries Expense**5. **531 Advertising Expense**6. **532 Delivery Expense**7. **533 Insurance Expense**8. **534 Office Supplies Expense**9. **535 Rent Expense**10. **536 Repairs Expense**11. **537 Selling Expenses**12. **538 Store Supplies Expense**13. **561 Depreciation Expense-Office Equipment**14. **562 Depreciation Expense-Store Equipment**15. **590 Miscellaneous Expense**16. **710 Interest Expense**### Diagram ExplanationThis image is a straightforward tabular list without any accompanying graphs or diagrams. Each item is associated with a unique account number, providing a systematic method for tracking financial transactions.### Navigation and Progress IndicatorsThe left side of the image displays homework progress for Chapter 8, noting assignments with designations such as "PR.08.02A: BLANKSHEET," "PR.08.03A: BLANKSHEET," and "PR.08.04A: BLANKSHEET," along with progress and assignment score information at the bottom indicating a score of 84.91%. For educational purposes

To prepare bank reconciliation statement, follows as below: Result:

cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance of $468,460 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 $73,870. b. A deposit of $51,230, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $50,630 on a $48,220 note, including interest of $2,410. d. A check for $9,160 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $916. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $680 had been erroneously charged by the bank as $860. f. Bank service charges for April amounted to $170. Required: 1. Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Add:” or “Deduct:” will automatically appear if it is required. Enter all amounts as positive numbers. 2. Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash

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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cash account for Norwegian Medical Co. at April 30 indicated a balance of $403,784. The bank statement indicated a balance of $468,460 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 $73,870.
b.	A deposit of $51,230, representing receipts of April 30, had been made too late to appear on the bank statement.
c.	The bank collected $50,630 on a $48,220 note, including interest of $2,410.
d.	A check for $9,160 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $916. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account.
e.	A check drawn for $680 had been erroneously charged by the bank as $860.
f.	Bank service charges for April amounted to $170.

	Required:
1.	Prepare a bank reconciliation. Be sure to complete the statement heading. Refer to the Labels and Amount Descriptions for the exact wording of text entries. “Add:” or “Deduct:” will automatically appear if it is required. Enter all amounts as positive numbers.
2.	Journalize the necessary entries. The accounts have not been closed. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
3.	If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash?

**Bank Reconciliation for Norwegian Medical Co.**

**Bank Statement:**
- **Cash balance according to bank statement:** $468,460.00
- **Add: Deposit of April 30, not recorded by bank:** $51,320.00
- **Outstanding checks:** $7,870.00
- **Deduct: Bank error in charging check as $860 instead of $680:** $180.00
- **Adjusted balance:** $124,920.00

**Company Records:**
- **Cash balance according to company's records:** $403,784.00
- **Add: Note and interest collected by bank:** $6,095.00
- **Deduct: Bank error in charging check as $860 instead of $680:** $180.00
- **Bank service charges:** $170.00
- **Adjusted balance:** $409,525.00

**Journal Entries:**

| **Date** | **Description** | **Post. Ref.** | **Debit** | **Credit** | **Accounting Equation** |
|-----------|-------------------------------------------|----------------|------------|------------|------------------------------------|
| Apr. 30 | Cash | | $50,650.00 | | ! |
| | Notes Receivable | | | 2,410.00 | |
| | Interest Revenue | | | 2,410.00 | ! |
| | Accounts Payable-Universal Supply Co. | | 8,244.00 | | ! |
| | Miscellaneous Expense | | 170.00 | | |
| | Cash | | | 170.00 | ! |

**Instructions:**
- Journalize the necessary entries. Use the chart of accounts for exact account titles. Each line in the journal page is dedicated to either debit or credit entries. Indent a credit entry automatically when entered.

**Progress:**
- 2/3 items completed
- Assignment Score: 84.91%

_End of Record._

### General Ledger Overview

This text provides a detailed view of a general ledger structure, categorizing various elements under Assets, Liabilities, Equity, Revenue, and Expenses. Below is a breakdown of these categories:

#### Assets
1. **110 Cash**
2. **111 Petty Cash**
3. **120 Accounts Receivable**
4. **121 Notes Receivable**
5. **141 Merchandise Inventory**
6. **145 Office Supplies**
7. **146 Store Supplies**
8. **151 Prepaid Insurance**
9. **181 Land**
10. **191 Office Equipment**
11. **192 Accumulated Depreciation-Office Equipment**
12. **193 Store Equipment**
13. **194 Accumulated Depreciation-Store Equipment**

#### Liabilities
1. **211 Accounts Payable-Universal Supply Co.**
2. **221 Notes Payable**
3. **222 Interest Payable**
4. **231 Salaries Payable**
5. **241 Sales Tax Payable**

#### Equity
1. **310 Owner, Capital**
2. **311 Owner, Drawing**

#### Revenue
1. **410 Sales**
2. **610 Interest Revenue**

#### Expenses
1. **510 Cost of Merchandise Sold**
2. **515 Credit Card Expense**
3. **516 Cash Short and Over**
4. **520 Salaries Expense**
5. **531 Advertising Expense**
6. **532 Delivery Expense**
7. **533 Insurance Expense**
8. **534 Office Supplies Expense**
9. **535 Rent Expense**
10. **536 Repairs Expense**
11. **537 Selling Expenses**
12. **538 Store Supplies Expense**
13. **561 Depreciation Expense-Office Equipment**
14. **562 Depreciation Expense-Store Equipment**
15. **590 Miscellaneous Expense**
16. **710 Interest Expense**

### Diagram Explanation
This image is a straightforward tabular list without any accompanying graphs or diagrams. Each item is associated with a unique account number, providing a systematic method for tracking financial transactions.

### Navigation and Progress Indicators
The left side of the image displays homework progress for Chapter 8, noting assignments with designations such as "PR.08.02A: BLANKSHEET," "PR.08.03A: BLANKSHEET," and "PR.08.04A: BLANKSHEET," along with progress and assignment score information at the bottom indicating a score of 84.91%.

For educational purposes

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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