Instructions:

the cash account for pala medical co at june 30,20Y1 indicated a balance of 91,408. the bank statement indicated a balance of 126,590 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the record revealed the following reconciled items:

a. Checks outstanding totaled $33,700.

b. A deposit of $18,900, representing a receipt of June 30, had been made too late to appear on bank statement.

c. The bank collected $22,042 on a $20,600 note including interest of 1,442.

d. A check for $1,600 returned with the statement had been incorrectly recorded by Pala Medical Co as $160. 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

f. Bank service charges for June amounted to $40.

1. Please make a bank reconciliation

2. Journalize necessary entries

3. If a balance sheet were prepared for Pala medical co on June 30, 20Y1 what amount should be reported as cash?

a. Check qutanding botwed twa roo I Bewe serice chaved bor dire oreurled to 5 io. Asquiret. I. Awicee a hari rocondaturi 7. Anmotre the newesary eveled Bank Reconcillation Shadod colls have foedback. hg reconciling iten Pala Medical Co. Score: 66/108 Bank Aeconcillation June 30,20Y1 1 Cash balance according to bank statement $126,59000 Supply Co. for af 2 Add: Deposit in transit on June 30 had been erronec 5 Add: Bank error in charging check as $860 instead of $680 1 Total additions 5 Deduct: Outstanding checks 8. Adjusted balance prepared for Pala Cash balance according to company's records 7. Add: Note collected by bank, including $1,442 interest 10. Deduct: Bank service charges 11 Deduct: Error in recording check 11. Total deductions 15. Adjusted balance Question not attempted: 3. If a balance sheet woro prepared for Pala Modical Co. on June so, 20Yt, what amount should be roported as cash