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? E Column Chromatography XAssignments: CHEM2610 ×Connect - Sign InO (89) YouTube* CengageNOWv2 | Online t xThe cash account for Nor XA v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseQRABPEABmPtChapter 8 HomeworkеВookShow Me HowCalculatorE Print ItemNorwegian Medical Co.1. PR.08.02A.BLANKSHEETBank Reconciliation2. PR.08.03A.BLANKSHEET(Label)1 Cash balance according to bank statement$468,460.003. PR.08.04A.BLANKSHEET2 Add: Deposit of April 30, not recorded by bank$51,230.003 Outstanding checks73,870.004 Deduct: Bank error in charging check$860 instead of $680180.005 Adjusted balance$124,920.007 Cash balance according to company's records$403,784.008 Add: Note and interest collected by bank6,095.009 Deduct: Bank error in charging check as $860 instead of $680$180.0010 Bank service charges170.0011 Adjusted balance$409,525.00Journal2. 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 acredit entry when a credit amount is entered.PAGE 1JOURNALACCOUNTING EQUATIONDATEDESCRIPTIONPOST. REF.DEBITCREDITASSETSLIABILITIESEQUITY1Apr. 30 Cash50,630.002Notes Receivable2,410.09Interest Revenue2,410.00Accounts Payable-Universal Supply Co.8,244.004Miscellaneous Expense170.00Cash170.00Check My Work 1 more Check My Work uses remaining.PreviousNextProgress: 2/3 itemsAssignment Score: 84.91%Save and ExitSubmit Assignment for Grading+ E Column Chromatography XAssignments: CHEM2610 ×Connect - Sign In(89) YouTube* CengageNOWv2 | Online t xThe cash account for Nor XA v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=falseRABPEABmPtKChapter 8 HomeworkShow Me HowE CalculatorPrint ItemеBookGeneral Ledger1. PR.08.02A.BLANKSHEETASSETSREVENUE2. PR.08.03A.BLANKSHEET110 Cash410 Sales111 Petty Cash610 Interest Revenue3. PR.08.04A.BLANKSHEET120 Accounts Receivable131 Notes ReceivableEXPENSES141 Merchandise Inventory510 Cost of Merchandise Sold145 Office Supplies515 Credit Card Expense146 Store Supplies516 Cash Short and Over151 Prepaid Insurance520 Salaries Expense181 Land531 Advertising Expense191 Office Equipment532 Delivery Expense192 Accumulated Depreciation-Office Equipment533 Insurance Expense193 Store Equipment534 Office Supplies Expense194 Accumulated Depreciation-Store Equipment535 Rent Expense536 Repairs ExpenseLIABILITIES537 Selling Expenses211 Accounts Payable-Universal Supply Co.538 Store Supplies Expense221 Notes Payable561 Depreciation Expense-Office Equipment222 Interest Payable562 Depreciation Expense-Store Equipment231 Salaries Payable590 Miscellaneous Expense241 Sales Tax Payable710 Interest ExpenseEQUITY310 Owner, Capital311 Owner, DrawingCheck My Work 1 more Check My Work uses remaining.PreviousNextProgress: 2/3 itemsAssignment Score: 84.91%Save and ExitSubmit Assignment for Grading+

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

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ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

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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?

E Column Chromatography X
Assignments: CHEM2610 ×
Connect - Sign In
O (89) YouTube
* CengageNOWv2 | Online t x
The cash account for Nor X
A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
Q
R
ABP
EAB
m
Pt
Chapter 8 Homework
еВook
Show Me How
Calculator
E Print Item
Norwegian Medical Co.
1. PR.08.02A.BLANKSHEET
Bank Reconciliation
2. PR.08.03A.BLANKSHEET
(Label)
1 Cash balance according to bank statement
$468,460.00
3. PR.08.04A.BLANKSHEET
2 Add: Deposit of April 30, not recorded by bank
$51,230.00
3 Outstanding checks
73,870.00
4 Deduct: Bank error in charging check
$860 instead of $680
180.00
5 Adjusted balance
$124,920.00
7 Cash balance according to company's records
$403,784.00
8 Add: Note and interest collected by bank
6,095.00
9 Deduct: Bank error in charging check as $860 instead of $680
$180.00
10 Bank service charges
170.00
11 Adjusted balance
$409,525.00
Journal
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.
PAGE 1
JOURNAL
ACCOUNTING EQUATION
DATE
DESCRIPTION
POST. REF.
DEBIT
CREDIT
ASSETS
LIABILITIES
EQUITY
1
Apr. 30 Cash
50,630.00
2
Notes Receivable
2,410.09
Interest Revenue
2,410.00
Accounts Payable-Universal Supply Co.
8,244.00
4
Miscellaneous Expense
170.00
Cash
170.00
Check My Work 1 more Check My Work uses remaining.
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E Column Chromatography X
Assignments: CHEM2610 ×
Connect - Sign In
(89) YouTube
* CengageNOWv2 | Online t x
The cash account for Nor X
A v2.cengagenow.com/ilrn/takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator=&inprogress=false
R
ABP
EAB
m
Pt
K
Chapter 8 Homework
Show Me How
E Calculator
Print Item
еBook
General Ledger
1. PR.08.02A.BLANKSHEET
ASSETS
REVENUE
2. PR.08.03A.BLANKSHEET
110 Cash
410 Sales
111 Petty Cash
610 Interest Revenue
3. PR.08.04A.BLANKSHEET
120 Accounts Receivable
131 Notes Receivable
EXPENSES
141 Merchandise Inventory
510 Cost of Merchandise Sold
145 Office Supplies
515 Credit Card Expense
146 Store Supplies
516 Cash Short and Over
151 Prepaid Insurance
520 Salaries Expense
181 Land
531 Advertising Expense
191 Office Equipment
532 Delivery Expense
192 Accumulated Depreciation-Office Equipment
533 Insurance Expense
193 Store Equipment
534 Office Supplies Expense
194 Accumulated Depreciation-Store Equipment
535 Rent Expense
536 Repairs Expense
LIABILITIES
537 Selling Expenses
211 Accounts Payable-Universal Supply Co.
538 Store Supplies Expense
221 Notes Payable
561 Depreciation Expense-Office Equipment
222 Interest Payable
562 Depreciation Expense-Store Equipment
231 Salaries Payable
590 Miscellaneous Expense
241 Sales Tax Payable
710 Interest Expense
EQUITY
310 Owner, Capital
311 Owner, Drawing
Check My Work 1 more Check My Work uses remaining.
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Assignment Score: 84.91%
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