Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $15,160. The bank statement indicated a balance of $17,390 on June 30, 2011. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $6,260. b. A deposit of $6,520, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $3,390 on a $3,220 note, including interest of $170. d. A check for $660 returned with the statement had been incorrectly recorded by Pala Medical Co, as $600. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $90 had been erroneously charged by the bank as $900. f. Bank service charges for June amounted to $30. Required: 1. Prepare a bank reconciliation. 17,390 Pala Medical Co. Bank Reconciliation June 30, 20Y1 Cash balance according to bank statement Adjustments: Deposit of June 30, not recorded by bank Bank error in charging check as $900 instead of $90 Outstanding checks 6,520 6,260 adjustments Adjusted balance Cash balance according to company's records Adjustments: $ Total adjustments Adjusted balance 6,520 Adjustments: Deposit of June 30, not recorded by bank Bank error in charging check as $900 instead of $90 Outstanding checks 6,260 Total adjustments Adjusted balance $ s Cash balance according to company's records Adjustments: Total adjustments 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. 20Y1 June 30 b. June 30 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash