Calculator Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 2011, indicated a balance of $10.475. The bank statement indicated a balance of $11,710 one 30, 2011. Comparing the bank statement and the accompanying canceled checks and memes with the records revealed the following recondi items: a. Checks outstanding totaled $1,220. b. A deposit of $4,390, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $2,280 on a $2,170 note, induding interest of $110. 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 $90 had been erroneously charged by the bank as $900. f. Bank service charges for June amounted to $25. Required: 1. Prepare a bank reconciliation Pala Medical Co. Bank Reconciliation June 30, 2011 Cash balance according to bank statement Adjustments: Deposit of June 30, not recorded by bank $11.710 4,390 Error in recording check Outstanding chedes Total adjustments en com . Comma Splices: Ho h an Gorcalez - Ha.. Calculator Total adjustments Adjusted balance 000 Cash balance according to company's records Adjustments: Proceeds of note collected by bank, including $110 interest Error in recording check. Bank service charges Total adjustments Adjusted balance | 10 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound ransaction, if an amount box does not require an entry, leave it blank. a. 2011 June 30 Cash Notes Payable Notes Payable b. June 30 Accounts Payable Skyline Supply Co. Cash n e _ 9 w duding $110 interest Error in recording check Bank service charges Total adjustments Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been dosed. For a transaction, if an amount box does not require an entry, leave it blank. a. 2011 June 30 Cash Notes Payable Notes Payable b. June 30 Accounts Payable-Skyline Supply Co. Cash 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 2011, what amount should be reported as cash? 9