THE CASH ACCOUNT FOR REMEDY MEDICAL CO. AT APRIL 30, 2014, INDICATED A BALANCE OF $18,885. THE BANK STATEMENT INDICATED A BALANCE OF $23,775 ON APRIL 30, 2014. COMPARING THE BANK STATEMENT AND THE ACCOMPANYING CANCELED CHECKS AND MEMOS WITH THE RECORDS REVEALED THE FOLLOWING RECONCILING ITEMS: CHECKS OUTSTANDING TOTALED $7,840. A DEPOSIT OF $3,580, REPRESENTING RECEIPTS OF APRIL 30, HAD BEEN MADE TOO LATE TO APPEAR ON THE BANK STATEMENT. THE BANK COLLECTED $3,780 ON A NOTE LEFT FOR COLLECTION. THE FACE OF NOTE WAS $3,600. A CHECK FOR $770 RETURNED WITH THE STATEMENT HAD BEEN INCORRECTLY RECORDED BY REMEDY MEDICAL CO. AS $700. THE CHECK WAS FOR THE PAYMENT OF AN OBLIGATION TO COPELIN CO. FOR A PURCHASE ON ACCOUNT. A CHECK DRAWN FOR $330 HAD BEEN ERRONEOUSLY CHARGED BY THE BANK AS $3,300. BANK SERVICE CHARGES FOR APRIL AMOUNTED TO $110. 1. PREPARE A BANK RECONCILIATION. 2. JOURNALIZE THE NECESSARY ENTRIES. 3. IF A BALANCE SHEET WERE PREPARED FOR REMEDY MEDICAL CO. ON APRIL 30, 2014, WHAT AMOUNT SHOULD BE REPORTED AS CASH?
THE CASH ACCOUNT FOR REMEDY MEDICAL CO. AT APRIL 30, 2014, INDICATED A BALANCE OF $18,885. THE BANK STATEMENT INDICATED A BALANCE OF $23,775 ON APRIL 30, 2014. COMPARING THE BANK STATEMENT AND THE ACCOMPANYING CANCELED CHECKS AND MEMOS WITH THE RECORDS REVEALED THE FOLLOWING RECONCILING ITEMS: CHECKS OUTSTANDING TOTALED $7,840. A DEPOSIT OF $3,580, REPRESENTING RECEIPTS OF APRIL 30, HAD BEEN MADE TOO LATE TO APPEAR ON THE BANK STATEMENT. THE BANK COLLECTED $3,780 ON A NOTE LEFT FOR COLLECTION. THE FACE OF NOTE WAS $3,600. A CHECK FOR $770 RETURNED WITH THE STATEMENT HAD BEEN INCORRECTLY RECORDED BY REMEDY MEDICAL CO. AS $700. THE CHECK WAS FOR THE PAYMENT OF AN OBLIGATION TO COPELIN CO. FOR A PURCHASE ON ACCOUNT. A CHECK DRAWN FOR $330 HAD BEEN ERRONEOUSLY CHARGED BY THE BANK AS $3,300. BANK SERVICE CHARGES FOR APRIL AMOUNTED TO $110. 1. PREPARE A BANK RECONCILIATION. 2. JOURNALIZE THE NECESSARY ENTRIES. 3. IF A BALANCE SHEET WERE PREPARED FOR REMEDY MEDICAL CO. ON APRIL 30, 2014, WHAT AMOUNT SHOULD BE REPORTED AS CASH?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:THE CASH ACCOUNT FOR REMEDY MEDICAL CO. AT APRIL 30, 2014,
INDICATED A BALANCE OF $18,885. THE BANK STATEMENT INDICATED
A BALANCE OF $23,775 ON APRIL 30, 2014. COMPARING THE BANK
STATEMENT AND THE ACCOMPANYING CANCELED CHECKS AND
MEMOS WITH THE RECORDS REVEALED THE FOLLOWING RECONCILING
ITEMS:
CHECKS OUTSTANDING TOTALED $7,840.
A DEPOSIT OF $3,580, REPRESENTING RECEIPTS OF APRIL 30, HAD BEEN
MADE TOO LATE TO APPEAR ON THE BANK STATEMENT.
THE BANK COLLECTED $3,780 ON A NOTE LEFT FOR COLLECTION. THE
FACE OF NOTE WAS $3,600.
A CHECK FOR $770 RETURNED WITH THE STATEMENT HAD BEEN
INCORRECTLY RECORDED BY REMEDY MEDICAL CO. AS $700. THE
CHECK WAS FOR THE PAYMENT OF AN OBLIGATION TO COPELIN CO.
FOR A PURCHASE ON ACCOUNT.
A CHECK DRAWN FOR $330 HAD BEEN ERRONEOUSLY CHARGED BY
THE BANK AS $3,300.
BANK SERVICE CHARGES FOR APRIL AMOUNTED TO $110.
1. PREPARE A BANK RECONCILIATION.
2. JOURNALIZE THE NECESSARY ENTRIES.
3. IF A BALANCE SHEET WERE PREPARED FOR REMEDY MEDICAL CO.
ON APRIL 30, 2014, WHAT AMOUNT SHOULD BE REPORTED AS CASH?
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