Bank Reconciliation and Entries

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $9,150. The bank statement indicated a balance of $10,120 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 $3,640.
2. A deposit of $3,800, representing receipts of June 30, had been made too late to appear on the bank statement.
3. The bank collected $1,970 on a $1,870 note, including interest of $100.
4. 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 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 $50.

Required:

1. Prepare a bank reconciliation.

Pala Medical Co.
Bank Reconciliation
June 30, 20Y1
Cash balance according to bank statement		$fill in the blank dcd538ff9fb1003_1
Adjustments:
Deposit of June 30, not recorded by bank	$fill in the blank dcd538ff9fb1003_3
Bank error in charging check as $800 instead of $80	fill in the blank dcd538ff9fb1003_5
Outstanding checks	fill in the blank dcd538ff9fb1003_7
Total adjustments		fill in the blank dcd538ff9fb1003_8
Adjusted balance		$fill in the blank dcd538ff9fb1003_9
Cash balance according to company's records		$fill in the blank dcd538ff9fb1003_10
Adjustments:
Proceeds of note collected by bank, including $100 interest	$fill in the blank dcd538ff9fb1003_12
Error in recording check.	fill in the blank dcd538ff9fb1003_14
Bank service charges	fill in the blank dcd538ff9fb1003_16
Total adjustments		fill in the blank dcd538ff9fb1003_17
Adjusted balance		$fill in the blank dcd538ff9fb1003_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	Cash	fill in the blank 115ccb03cfaafa2_2	fill in the blank 115ccb03cfaafa2_3
	Notes Receivable	fill in the blank 115ccb03cfaafa2_5	fill in the blank 115ccb03cfaafa2_6
	Interest Revenue	fill in the blank 115ccb03cfaafa2_8	fill in the blank 115ccb03cfaafa2_9
b. June 30	Accounts Payable-Skyline Supply Co.	fill in the blank 115ccb03cfaafa2_11	fill in the blank 115ccb03cfaafa2_12
	Miscellaneous Expense	fill in the blank 115ccb03cfaafa2_14	fill in the blank 115ccb03cfaafa2_15
	Cash	fill in the blank 115ccb03cfaafa2_17	fill in the blank 115ccb03cfaafa2_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 46fe9dfc603401c_1