Answer:
Missing word <em>"The bank collected $42,000 on a $40,000 note, including interest of $2,000. A check for $7,600 returned with the statement had been incorrectly recorded by American Medical Co. as $760. The check was for the payment of an obligation to Targhee Supply Co. for a purchase on account. A check drawn for $240 had been erroneously charged by the bank as $420. Bank service charges for April amounted to $145. Instructions: Prepare a bank reconciliation."</em>
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Bank reconciliation statement
Particulars Amount ($)
Balance as per bank statement 388,600
Add: Deposit in transit 42,500
Add: Error in recording the check (420-240) <u> 180 </u> 431,280
Less: Outstanding checks <u>(61,280)</u>
Adjusted balance as per Bank statement <u>370,000</u>
Bank reconciliation statement
Particulars Amount ($)
Balance as per books 334,985
Add: Note collected 40,000
Add: Interest collected <u> 2,000 </u> 376,985
Less: Error in recording check (7,600-760) (6,840)
Less: Service charges levied <u>(145) </u>
Adjusted balance as per books <u>370,000</u>
