he cash account for Pala Medical Co. at June 30,20Y1, indicated a balance of $166,436. The bank ecords revealed the following reconciling items: a. Checks outstanding totaled $19,427. b. A deposit of $12,300, representing receipts of June 30 , had been made too late to appear on t c. The bank collected $26,500 on a $25,000 note, including interest of $1,500. d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $195 had been erroneously charged by the bank as $915. f. Bank service charges for June amounted to $55. Required: 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should b ply Co. for a purchase on account been erroneously charged by the bank as $915 alance of $195,688 on June 30,20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the heck was for the payment of he cash account for Pala Medical Co. at June 30,20Y1, indicated a balance of $166,436. The bank stat cords revealed the following reconciling items: a. Checks outstanding totaled $19,427. b. A deposit of $12,300, representing receipts of June 30 , had been made too late to appear on the c. The bank collected $26,500 on a $25,000 note, including interest of $1,500. d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $195 had been erroneously charged by the bank as $915. f. Bank service charges for June amounted to $55. Required: 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical co. on June 30, 20Y1, what amount should be repc The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of \$195,688 on June records revealed the following reconcling items. a. Checks outstanding totaled $19,427 b. A deposit of $12,300, representing receipts of June 30 , had been made too late to appear on the bank statement. c. The bank collected $26,500 on a $25,000 note. including interest of $1,500. d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co as $400. The check was for the payment of an obligation to sikyline Supply Co. for a purchase on account. 6. A check drawn for $195 had been erroneously charged by the bank as $915 1. Bank service charges for June amounted to $55 : Required: 1 Prepare a bank reconcilition 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical ca on June 30, 20y1, what amount should be reported as cash? CHART OF ACCOUNTS Pala Medical Co. General Ledger ASSETS 110 Cash REVENUE 111 Petty Cash 410 Sales 120 Accounts Receivable 131 Notes Receivable 141 Merchandise Inventory 610 Interest Revenue 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181Land191officeEquipment192AccumulatedDepreciation-OmiceEquipment531AdvertisingExpense532DeliveryExpense533InsuranceExpense 193StoreEquipment194AccumulatedDepreciation-StoreEquipmentLIABILIIIES211AccountsPayable-SkylineSupplyCo.534officeSuppliesExpense535RentExpense536RepairsExpense537SellingExpenses538StoreSuppliesExpense 221 Notes Payable 561 Depreciation Expense-Office Equipment 222 Interest Payable 562 Depreciation Expense-Store Equipment 231 Salaries Payable 590 Miscellaneous Expense Chart of Accounts 120 Accounts Receivable 131 Notes Receivable 141 Merchandise inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191officeEquipment192AccumulatedDepreciation-OfficeEquipment532DeliveryExpense533InsuranceExpense 193StoreEquipment194AccumulatedDepreciation-StoreEquipmentLIABILITIES211AccountsPayable-SkylineSupplyCo.534OfficeSuppliesExpense535RentExpense536RepairsExpense537SellingExpenses538StoreSuppliesExpense 221 Notes Payable 561 Depreciation Expense-Office Equipment 222 Interest Payable 562 Depreciation Expense-Store Equipment 231 Salaries Payable 590 Miscellaneous Expense 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings. 312 Dividends Labels and Amount Descriptions Labels For the Month Ended June 30, 20Y1 June 30,20Y1 Amount Descriptions Adjusted balance Bank error in charging check as $915 instead of $195 Bank service charges Deposit in transit on June 30 Error in recording check Note collected by bank, including $1,500 interest Outstanding checks Total additions Total deductions 1. Prepare a bank reconciliation. Bank Reconciliation instructions Bank Reconciliation Bank Reconciliation Instructions 2. Joumalice the necessary entries