Bank Reconciliation and Entries

Bank Reconciliation and Entries

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 (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.

3. If a balance sheet were prepared for Remedy Medical Co. on April 30, 2014, what amount should be reported as cash?
$ 22,485.00