Bank Reconciliation and Entries The cash account for American Medical Co. at April 30 indicated a balance of $12,480. The bank statement indicated a balance of $14,760 on April 30. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $5,310. A deposit of $5,540, representing receipts of April 30, had been made too late to appear on the bank statement. The bank collected $2,880 on a $2,730 note, including interest of $150. A check for $440 returned with the statement had been incorrectly recorded by American Medical Co. as $400. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. A check drawn for $30 had been erroneously charged by the bank as $300. Bank service charges for April amounted to $60. Required: 1. Prepare a bank reconciliation. American Medical Co. Bank Reconciliation April 30 Cash 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. For a compound transaction, if an amount box does not require an entry, leave it blank. a. April 30 b. April 30 3. If a balance sheet is prepared for American Medical Co. on April 30, what amount should be reported as cash? $