Bank Reconciliation and Entries The cash account for Pale Medical Co. at June 30, 2011, indicated a balance of 513,340.The bank statement indicated a balance of $15,710 on June 30, 201. Comparing the bank statement and the accompanying canceled checks and memor with the records revealed the following reconciling Items: .. Checks outstanding totaled $5,660. b. A deposit of $5,890, representing receipts of June 30, had been made too late to appear on the bank statement c. The bank collected $3,060 on a $2,910 note, including interest of $150. 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 Skyline Supply Co. for a purchase on account. c. A check drawn for $40 had been erroneously charged by the bank as $400. 1. Bank service charges for June amounted to $30. Required: 15.710 1. Prepare a bank reconciliation Pala Medical Co. Bank Reconciliation June 30, 20Y1 Cash balance according to bank statement Adjustments: Deposit of June 30, not recorded by bank Bank error in charging check as $400 instead of $40 Outstanding checks 190 360 990 Total adjustments 16.00 13.340 2,910 Cash balance according to company's records Adjustments: Proceeds of note collected by bank, including $150 interest Error in recording check. Bank service charges Total adjustments Adjusted balance 70 30 2,960 16.100 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. 2011 June 30 Cash 3.000 2.910 Notes Receivable 150 Interest Revenue 70 b. June 30 Accounts Payable-Skyline Supply Co. Miscellaneous Expense Cash 70 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 2011, what amount should be reported as cash