Bank reconciliation and entries WN - Instructions Chart of Accounts Amount Descriptions Bank Reconciliation Journal Final Question Instructions The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of S97.456. The bank statement indicated a balance of $127,960 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items! 6. A. Checks outstanding totaled S30,050. B. A deposit of $19,720, representing receipts of June 30, had been made too late to appear on the bank statement C. The bank collected $22,149 on a $20,700 note, including interest of $1,449. D. A check for $1,450 returned with the statement had been incorrectly recorded by Pala Medical Co, as $145. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E. A check drawn for $290 had been erroneously charged by the bank as $920. F. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for fext entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. 2. Joumalize the necessary entries. Refer to the Chart of Accounts for exact wording of account billes. 3. W a balance sheer were prepared for Pala Medical Co. on June 30, 2011, what amount should be reported as cash? Chart of Accounts CHART OF ACCOUNTS Pala Medical Co. General Ledger ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 131 Notes Receivable EXPENSES 141 Merchandise Inventory 510 Cost of Merchandise Sold 145 Office Supplies 146 Store Supplies 515 Credit Card Expense 516 Cash Short and Over 151 Prepaid Insurance 520 Salaries Expense 181 Land 531 Advertising Expense 532 Delivery Expense 191 Office Equipment Chart of Accounts 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 194 Accumulated Depreciation-Store Equipment LIABILITIES 537 Selling Expenses 211 Accounts Payable-Skyline Supply Co. 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 221 Notes Payable 222 Interest Payable 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 231 Salaries Payable 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Amount Descriptions Amount Descriptions Adjusted balance Bank error in charging check as $290 instead of $920 Bank error in charging check as $920 instead of $290 Bank service charges Check for $920 returned because of insufficient funds Deposit of June 30, not recorded by bank Error in recording check Error in recording June 30 deposit Outstanding checks Proceeds of note collected by bank, including $1,449 interest Total adjustments Bank Reconciliation 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. Pala Medical Co. Bank Reconciliation June 30, 20Y1 1 Cash balance according to bank statement 2 Adjustments: 9 Cash balance according to company's records 10 Adjustments: Journal 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. PAGE 1 JOURNAL ACCOUNTING EQUATION DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY Final Question 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash