Instructions

The cash account for Pala Medical Co$.$ at June $30,20Y,$ indicated a balance of $$82,726.$ The bank statement indicated a balance of $$128,040$ on June $30,20$Y$1.$ Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a$.$ Checks outstanding totaled $$34,090.$

b$.$ A deposit of $$18,430,$ representing receipts of June $30,$ had been made too late to appear on the bank statement.

c$.$ The bank collected $$31,779$ on a $$29,700$ note, including interest of $$2,079.$

d$.$ A check for $$1,900$ returned with the statement had been incorrectly recorded by Pala Medical Co$.$ as $$190.$ The check was for the payment of an obligation to Skyline Supply Co$.$ for a purchase on account.

e$.$ A check drawn for $$370$ had been erroneously charged by the bank as $$730.$

f$.$ Bank service charges for June amounted to $$55.$

Required:

Prepare a bank reconciliation.

Journalize the necessary entries.

If a balance sheet were prepared for Pala Medical Co$.$ C$7$ June $30,20$Y$1,$ what amount should be reported as cash?