The cash account for American Medical Co. at April 30 indicated a balance of $334,985

5. 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 for 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.

Don't use plagiarized sources. Get Your Custom Essay on
The cash account for American Medical Co. at April 30 indicated a balance of $334,985
Just from $13/Page
Order Essay

Instructions1. Prepare a bank reconciliation. Refer to the Amount Descriptions list 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 closed. 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?

6. The cash account for Brentwood Bike Co. at May 1 indicated a balance of $34,250. During May, the total cash deposited was $140,300, and checks written totaled $138,880. The bank statement indicated a balance of $43,525 on May 31. Comparing the bank statement, the canceled checks, and the accompanying memos with the records revealed the following reconciling items:

A. Checks outstanding totaled $6,440.B. A deposit of $1,850 representing receipts of May 31, had been made too late to appear on the bank statement.C. The bank had collected for Brentwood Bike Co. $5,250 on a note left for collection. The face of the note was $5,000.D. A check for $390 returned with the statement had been incorrectly charged by the bank as $930.E. A check for $210 returned with the statement had been recorded by Brentwood Bike Co. as $120. The check was for the payment of an obligation to Adkins Co. on account.F. Bank service charges for May amounted to $30.G. A check for $1,325 from Jennings Co. was returned by the bank due to insufficient funds.

Instructions1. Prepare a bank reconciliation as of May 31. Refer to the Amount Descriptions list 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 closed. Refer to the Chart of Accounts for exact wording of account titles.3. If a balance sheet is prepared for Brentwood Bike Co. on May 31, what amount should be reported as cash?

7. Bank Reconciliation and Entries Sunshine Interiors deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of July 31 have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital letters. All checks were written for payments on account. BANK RECONCILIATION FOR PRECEDING MONTH (DATED JUNE 30): Cash balance according to bank statement $9,422.80 Add deposit of June 30, not recorded by bank 780.80 $10,203.60 Deduct outstanding checks: No. 580 $310.10 No. 602 85.50 No. 612 92.50 No. 613 137.50 625.60 Adjusted balance $9,578.00 Cash balance according to company’s records $9,605.70 Deduct bank service charges 27.70 Adjusted balance $9,578.00 CASH ACCOUNT: Balance as of July 1 $ 9,578.00 CASH RECEIPTS FOR MONTH OF JULY 6,465.42 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in July: Date Amount Date Amount Date Amount July 2 $569.50 July 12 $580.70 July 23 $ 713.45 5 701.80 16 600.10 26 601.50 9 819.24 19 701.26 31 1,177.87 CHECKS WRITTEN: Number and amount of each check issued in July: Check No. Amount Check No. Amount Check No. Amount 614 $243.50 621 $309.50 628 $837.70 615 350.10 622 Void 629 329.90 616 279.90 623 Void 630 882.80 617 395.50 624 707.01 631 1,081.56 618 435.40 625 158.63 632 325.40 619 320.10 626 550.03 633 310.08 620 238.87 627 381.73 634 241.71 Total amount of checks issued in July $8,379.42 Click here to see JUNE BANK STATEMENT.Required:1. Prepare a bank reconciliation as of July 31. If errors in recording deposits or checks are discovered, assume that the errors were made by the company. Assume that all deposits are from cash sales. All checks are written to satisfy accounts payable. When required, enter amounts in dollars and cents.Sunshine InteriorsBank ReconciliationJuly 31, 20Y5Cash balance according to bank statement$ $ Adjusted balance$Cash balance according to company’s records$ $ $ Adjusted balance$ 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. When required, enter amounts in dollars and cents. For a compound transaction, if an amount box does not require an entry, leave it blank. a. 20Y5 July 31 b. July 31 3. What is the amount of Cash that should appear on the balance sheet as of July 31? $ 4. Assume that a canceled check for $180 has been incorrectly recorded by the bank as $1,800. Select how the error would be included in a bank reconciliation and how it should be corrected. Treatment To correct

  • Previous
Order your essay today and save 20% with the discount code: GREEN

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp