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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:
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?
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