Bank Reconciliation and Entries

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $9,945. The bank statement indicated a balance of $11,120 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

1. Checks outstanding totaled $4,000.
2. A deposit of $4,170, representing receipts of June 30, had been made too late to appear on the bank statement.
3. The bank collected $2,170 on a $2,060 note, including interest of $110.
4. A check for $880 returned with the statement had been incorrectly recorded by Pala Medical Co. as $800. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
5. A check drawn for $80 had been erroneously charged by the bank as $800.
6. Bank service charges for June amounted to $25.

Required:

1. Prepare a bank reconciliation.

Pala Medical Co. Bank Reconciliation June 30, 20Y1

Cash balance according to bank statement
Adjustments:
Bank service chargesDeposit of June 30, not recorded by bankError in recording check.Proceeds of note collected by bank, including $110 interest
Bank error in charging check as $800 instead of $80Bank service chargesError in recording check.Proceeds of note collected by bank, including $110 interest
Bank service chargesError in recording check.Proceeds of note collected by bank, including $110 interestOutstanding checks
Total adjustments
Adjusted balance
Cash balance according to company's records
Adjustments:
Bank error in charging check as $800 instead of $80Deposit of June 30, not recorded by bankProceeds of note collected by bank, including $110 interestOutstanding checks	$- -
Bank error in charging check as $800 instead of $80Deposit of June 30, not recorded by bankError in recording check.Outstanding checks	- -
Bank error in charging check as $800 instead of $80Deposit of June 30, not recorded by bankBank service chargesOutstanding checks	- Select -
Total adjustments		fill in the blank cc684303102cfee_17
Adjusted balance		$fill in the cc684303102cfee_18

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	Accounts ReceivableCashInterest ReceivableInterest RevenueNotes Receivable
	CashInterest PayableInterest ReceivableNotes PayableNotes Receivable
	CashInterest PayableInterest ReceivableInterest RevenueNotes Payable
b. June 30	Accounts Payable-Skyline Supply Co.Accounts Receivable-Skyline Supply Co.CashNotes PayablePetty Cash
	Notes Receivable-Skyline Supply Co.CashMiscellaneous ExpenseNotes PayableCash Short or Over
	Accounts Payable-Skyline Supply Co.Accounts Receivable-Skyline Supply Co.CashNotes PayablePetty Cash	- Select -	- Select -

3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?