Bank Reconciliation and Entries

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $10,555. The bank statement indicated a balance of $12,110 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 $4,360.
2. A deposit of $4,540, representing receipts of June 30, had been made too late to appear on the bank statement.
3. The bank collected $2,360 on a $2,240 note, including interest of $120.
4. 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.
5. A check drawn for $60 had been erroneously charged by the bank as $600.
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		$fill in the blank 135e72fd6fa1057_1
Adjustments:
	$fill in the blank 135e72fd6fa1057_3
	fill in the blank 135e72fd6fa1057_5
	fill in the blank 135e72fd6fa1057_7
Total adjustments		fill in the blank 135e72fd6fa1057_8
Adjusted balance		$fill in the blank 135e72fd6fa1057_9
Cash balance according to company's records		$fill in the blank 135e72fd6fa1057_10
Adjustments:
	$fill in the blank 135e72fd6fa1057_12
	fill in the blank 135e72fd6fa1057_14
	fill in the blank 135e72fd6fa1057_16
Total adjustments		fill in the blank 135e72fd6fa1057_17
Adjusted balance		$fill in the blank 135e72fd6fa1057_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 32b68a03f07afb4_2	fill in the blank 32b68a03f07afb4_3
		fill in the blank 32b68a03f07afb4_5	fill in the blank 32b68a03f07afb4_6
		fill in the blank 32b68a03f07afb4_8	fill in the blank 32b68a03f07afb4_9
b. June 30		fill in the blank 32b68a03f07afb4_11	fill in the blank 32b68a03f07afb4_12
		fill in the blank 32b68a03f07afb4_14	fill in the blank 32b68a03f07afb4_15
		fill in the blank 32b68a03f07afb4_17	fill in the blank 32b68a03f07afb4_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 c6e07bfe7feb059_1