Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $10,895. The bank statement indicated a balance of $12,400 on June 30, 20y!. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconcling items: a. Checks outstanding totaled $4,460 b. A deposit of $4,650, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $2,420 on a $2,290 note, including interest of $130. d. A check for $770 returned with the statement had been incorrectly recorded by Pala Medical Co. as $700. The check was for the payment of an obligation to Skyine Suppi Co. for a purchase on account e. A check drawn for $70 had been erronedusly charged by the bank as $700. r Bank service charges for June amounted to $25 Required 1. Prepare a bank reconcilltion. Pala Medical Co. Bank Reconoliation 12,400 Cash balance according to bank statement Deposit of June 30, not recorded by bank Bank error in charging check as $700 instead of $70 Outstanding checkS 4650 4460 820 otal adjustments Adjusted balance Cash balance according to company's records Adjustments 10,395