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ch 7 statement and the accomparying canceled checks and memos with the records revealed the folsing roconoling tems. A Checks outstanding totaled $16.445. B. A
ch 7
statement and the accomparying canceled checks and memos with the records revealed the folsing roconoling tems. A Checks outstanding totaled $16.445. B. A deposit of 59,000 , tepresenting receipts of June 30 , had been made too late to appear on the bank statement. C. The bank colected $31,800 on a $30.000 note, including interest of $1,800. D. A check for $2,000 returned weh the statement had been incorrecty recorded by Pala Modical Co. as 5200 . The check was for the payment af an obligason to Skyline Supply Co. for a purchase on account. E. A check drawn for $170 had been erroneouvy charged by the bank as $710. F. Bank secvise charges for dune amounted to 575 . 1. Prepare a bank reconcilation. Piefer to the Amount Descriposons isf provied foc the eract wording of the antwer choices for tert entiles. For those boxes in which you muat enter subtracted or negative numbers use a minua sign. 2. Joumatie the necessary entries Refer to the Chart of Account for evact wording of account taves. 3. If a balance sheet wese prepared for Pala Medcal Co on vune 30, 20 Y1, what amount thould be reported as cash? Chart of Accounts CHART OF ACCOUNTS Pala Medical Co. General Ledger \begin{tabular}{ll} \multicolumn{1}{l}{ 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 & 515 Credit Card Expense \\ 146 Store Supplies & 516 Cash Short and Over \\ 151 Prepaid Insurance & 520 Salaries Expense \\ 181 Land & 531 Advertising Expense \\ 191 Office Equipment & 532 Delivery Expense \\ 192 Accumulated Depreciation-Office Equipment & 533 Insurance Expense \end{tabular} Bank reconciliation and entries Instructions Chart of Accounts Amount Descriptions Bank Reconciliation EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary Amount Descriptions Adjusted balance Bank error in charging check as $710 instead of $170 Bank error in charging check as $170 instead of $710 Bank service charges Check for $710 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 $1,800 interest Total adjustments 1. Prepare a bank reconciation. 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. Bank reconciliation and entries \begin{tabular}{|l|l|l|} \hline Instructions & Chart of Accounts & Amount Descriptions \\ \hline Bank Reconciliation \end{tabular} Bank Reconciliation 2. socenalize the necestary antrad Referto the Chart of Accounts for evact nording of accounf hids. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash Step by Step Solution
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