Question
Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $10,910. The bank statement indicated a
Bank Reconciliation and Entries
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $10,910. The bank statement indicated a balance of $12,510 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
- Checks outstanding totaled $4,500.
- A deposit of $4,690, representing receipts of June 30, had been made too late to appear on the bank statement.
- The bank collected $2,440 on a $2,310 note, including interest of $130.
- A check for $550 returned with the statement had been incorrectly recorded by Pala Medical Co. as $500. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
- A check drawn for $60 had been erroneously charged by the bank as $600.
- Bank service charges for June amounted to $60.
Required:
1. Prepare a bank reconciliation.
Pala Medical Co. | ||
Bank Reconciliation | ||
June 30, 20Y1 | ||
Cash balance according to bank statement | $fill in the blank 193a36063fb6fab_1 | |
Adjustments: | ||
$fill in the blank 193a36063fb6fab_3 | ||
fill in the blank 193a36063fb6fab_5 | ||
fill in the blank 193a36063fb6fab_7 | ||
Total adjustments | fill in the blank 193a36063fb6fab_8 | |
Adjusted balance | $fill in the blank 193a36063fb6fab_9 | |
Cash balance according to company's records | $fill in the blank 193a36063fb6fab_10 | |
Adjustments: | ||
$fill in the blank 193a36063fb6fab_12 | ||
fill in the blank 193a36063fb6fab_14 | ||
fill in the blank 193a36063fb6fab_16 | ||
Total adjustments | fill in the blank 193a36063fb6fab_17 | |
Adjusted balance | $fill in the blank 193a36063fb6fab_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 | fill in the blank 343f27012013051_2 | fill in the blank 343f27012013051_3 | |
fill in the blank 343f27012013051_5 | fill in the blank 343f27012013051_6 | ||
fill in the blank 343f27012013051_8 | fill in the blank 343f27012013051_9 | ||
b. June 30 | fill in the blank 343f27012013051_11 | fill in the blank 343f27012013051_12 | |
fill in the blank 343f27012013051_14 | fill in the blank 343f27012013051_15 | ||
fill in the blank 343f27012013051_17 | fill in the blank 343f27012013051_18 |
3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash? $fill in the blank c4639bfdbffa008_1
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