Problem 7-3A Bank Reconciliation and Entries The cash account for Online Medical Co. at June 30, 2012, indicated a balance of $9,375. The bank statement indicated a balance of $10,760 on June 30, 2012. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $3,900. b. A deposit of $4,000, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank had collected $2,100 on a note left for collection. The face of the note was $2,000. d. A check for $550 returned with the statement had been incorrectly recorded by Online Medical Co. as $500. The check was for the payment of an obligation to Hirsch Co. for the purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for June amounted to $25. Instructions: Prepare a bank reconciliation. 2. Journalize the necessary entries. The accounts have not been closed. If a box does not require an entry, leave it blank If a balance sheet were prepared for Online Medical Co. on June 30, 2012, what amount should be reported as cash? $
Business & Finance homework help
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlinesOrder Paper Now