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Instructions The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $84,457. The bank statement indicated a balance of $127,190
Instructions The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on June 30, 2011. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $33,310. b. A deposit of $17,610, representing receipts of June 30, had been made too late to appear on the bank statement c. The bank collected $28,248 on a $26,400 note, including interest of $1,848. d. A check for $1,100 returned with the statement had been incorrectly recorded by Pala Medical Co, as $110. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $680 had been erroneously charged by the bank as $860. t. Bank service charges for June amounted to $45. Amount Descriptions Amount Descriptions Adjusted balance Bank error in charging check as $860 instead of $680 Bank service charges Deposit in transit on June 30 Deposit of June 30, not recorded by bank Error in recording check Outstanding checks Note collected by bank, including $1,848 interest Total additions Total deductions Pala Medical Co. Bank Reconciliation June 30, 20Y1 1 Cash balance according to bank statement 2 3 4 I 5 6 7 Cash balance according to company's records 9 10 11 12 13 Joumal 2. Joumalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. I JOURNAL ACCOUNTING DATE DESCRIPTION POST. REF DEBIT CREDIT ASSETS LIABILITI 1 4 3 6 Final Quostion Final Question 3. W a balance sheet were prepared for Pala Medical Co, on June 30, 2011, what amount should be reported as cush $
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