Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a...

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Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $8,510. The bank statement indicated a balance of $9,800 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 $3,530. b. A deposit of $3,680, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $1,910 on a $1,810 note, including interest of $100. d. A check for $550 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $500. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $40 had been erroneously charged by the bank as $400. f. Bank service charges for April amounted to $60. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add outstanding checks Deduct bank service charges Deduct note and interst collected by bank Adjusted balance Cash balance according to company's records Add error in recording check Deduct bank error in charging check as $400 instead of $40 Deduct bank service charges Adjusted balance 9,800 3,530 3 60 10,960 8,510 50 360 60 11,390 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. a. April 30 Accounts Receivable Cash Notes Payable b. April 30 Cash Cash Cash 1,910 50 360 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? 11,390 Bank Reconciliation and Entries The cash account for Norwegian Medical Co. at April 30 indicated a balance of $8,510. The bank statement indicated a balance of $9,800 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 $3,530. b. A deposit of $3,680, representing receipts of April 30, had been made too late to appear on the bank statement. c. The bank collected $1,910 on a $1,810 note, including interest of $100. d. A check for $550 returned with the statement had been incorrectly recorded by Norwegian Medical Co. as $500. The check was for the payment of an obligation to Universal Supply Co. for a purchase on account. e. A check drawn for $40 had been erroneously charged by the bank as $400. f. Bank service charges for April amounted to $60. Required: 1. Prepare a bank reconciliation. Norwegian Medical Co. Bank Reconciliation April 30 Cash balance according to bank statement Add outstanding checks Deduct bank service charges Deduct note and interst collected by bank Adjusted balance Cash balance according to company's records Add error in recording check Deduct bank error in charging check as $400 instead of $40 Deduct bank service charges Adjusted balance 9,800 3,530 3 60 10,960 8,510 50 360 60 11,390 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. If an amount box does not require an entry, leave it blank. a. April 30 Accounts Receivable Cash Notes Payable b. April 30 Cash Cash Cash 1,910 50 360 3. If a balance sheet is prepared for Norwegian Medical Co. on April 30, what amount should be reported as cash? 11,390

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It seems that youve provided an image that contains a bank reconciliation problem along with journal entries to be recorded for specific transactions To solve these Ill address the parts of the questi... View the full answer