The cash account for Discount Medical Co. at April 30, 2010, indicated a balance

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The cash account for Discount Medical Co. at April 30, 2010, indicated a balance of $4,604. The bank statement indicated a balance of $9,158 on April 30, 2010. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: Checks outstanding totaled $5,225. A deposit of $3,150, representing receipts of April 30, had been made too late to appear on the bank statement. The bank had collected $4,120 on a note left for collection. The face of the note was $4,000. A check for $2,490 returned with the statement had been incorrectly recorded by Discount Medical Co. as $2,409. The check was for the payment of an obligation to Goldstein Co. for the purchase of office equipment on account. A check drawn for $170 had been erroneously charged by the bank as $1,700. Bank service charges for April amounted to $30. For a compound transaction, accounts should be listed largest to smallest. 1. Prepare a bank reconciliation. DISCOUNT MEDICAL CO. Bank Reconciliation April 30, 2010 Cash balance according to bank statement Add: Deduct: Adjusted balance Cash balance according to company's records Add: Deduct: Adjusted balance 2. Journalize the necessary entries. The accounts have not been closed. If an amount box does not require an entry, leave it blank. Account Debit Credit

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