Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 20Y1, Indicated a balance of $10,925. The bank statement indicated a balance of $12,660 on June 30, 20Y1, Comparing. the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,560. b. A deposit of $4,750, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $2,470 on a $2,340 note, including interest of $130. d. A check for $440 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $50 had been erroneously charged by the bank as $500. f. Bank service charges for June amounted to $55. Required: 1. Prepare a bank reconciliation. Pala Medical Co. Bank Reconciliation June 30, 20Y1 Cash balance according to bank statement Adjustments: Total adjustments Du Adjusted balance Cash balance according to company's records. Adjustments: Adjustments! Total adjustments i Adjusted balance Cash balance according to company's records Adjustments: 8 Total adjustments Adjusted balance 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 b. June 30. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash