Bank reconciliation and entries Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Instructions The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 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 $61,280. B. A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement. C. The bank collected $42,000 on a $40,000 note, including interest of $2,000. D. A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was t the payment of an obligation to Targhee Supply Co. for a purchase on account. E. A check drawn for $240 had been erroneously charged by the bank as $420. F. Bank service charges for April amounted to $145. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions ist provided for the exact wording of the answer choices for text entries. "Deduct." or "Add:" will automatically appear if it is required. 2. Journalize the necessary entries. The accounts have not been calosed. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet is prepared for American 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
icon
Related questions
Question
Bank reconciliation and entries
Instructions Chart of Accounts
Amount Descriptions
Bank Reconciliation
Journal
Instructions
The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 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 $61,280.
B. A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement.
C. The bank collected $42,000 on a $40,000 note, including interest of $2,000.
D. A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was t
the
payment of an obligation to Targhee Supply Co. for a purchase on account.
E. A check drawn for $240 had been erroneously charged by the bank as $420.
F. Bank service charges for April amounted to $145.
Instructions
1. Prepare a bank reconciliation. Refer to the Amount Descriptions ist provided for the exact wording of the answer choices for text entries.
"Deduct." or "Add:" will automatically appear if it is required.
2. Journalize the necessary entries. The accounts have not been calosed. Refer to the Chart of Accounts for exact wording of account titles.
3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
Transcribed Image Text:Bank reconciliation and entries Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Instructions The cash account for American Medical Co. at April 30 indicated a balance of $334,985. The bank statement indicated a balance of $388,600 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 $61,280. B. A deposit of $42,500, representing receipts of April 30, had been made too late to appear on the bank statement. C. The bank collected $42,000 on a $40,000 note, including interest of $2,000. D. A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was t the payment of an obligation to Targhee Supply Co. for a purchase on account. E. A check drawn for $240 had been erroneously charged by the bank as $420. F. Bank service charges for April amounted to $145. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions ist provided for the exact wording of the answer choices for text entries. "Deduct." or "Add:" will automatically appear if it is required. 2. Journalize the necessary entries. The accounts have not been calosed. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps with 4 images

Blurred answer
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education