Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Pala Medical Co. at June 30, 20Y1 The cash account for Pala Medical Co at June 30, 20Y1, indicated a balance of $85,920. The bank

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Pala Medical Co. at June 30, 20Y1
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The cash account for Pala Medical Co at June 30, 20Y1, indicated a balance of $85,920. The bank statement indicated a balance of $127,910 on June 30, 20Y1. Companing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $32,540 b. A deposit of $18,540, representing receipts of June 30 , had been made too late to appear on the bank statement c. The bank collected $29,425 on a $27.500 note, including interest of $1,925 d. A check for $1,350 retumed with the statement had been incorrectly recorded by Pala Medical Co. as $135. The check was for the payment of an obligation to Skyline Supply Co, for a purchase on account. e. A check drawn for $570 had been erroneously charged by the bank as $750 1. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" \& "Deduct." will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account tities 3. If a balance sheet were prepared for Rala Medical Co. on Jane 30, 20Y1, what amount should be reported as cash? Bank Reconciliation June 30,20Y1 1 Cash balance according to bank statement 2 5 4 s. 6. Adjusted balance 1. Cash balance according to company's records 9 2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles. 3. If a balance sheet were prepared for Pala Medical Co. an June 30,20y1, what amount should be reported as cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Financial Accounting

Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac

14th edition

130565353X, 978-1305887510, 1305887514, 978-1305653535

More Books

Students also viewed these Accounting questions

Question

1. Check readers and library books. Is there ethnic diversity?

Answered: 1 week ago