Pala Medical Co.'s cash account as of June 30, 20Y1 indicated a balance of $97,456. The bank statement indicated a balance of $127,960 as of June 30, 20Y1. Comparison of the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

A.	Outstanding checks totaled $30,050.
B.	A deposit of $19,720, representing receipts for June 30, was made too late to appear on the bank statement.
C.	The bank collected $22,149 on a $20,700 note, including interest of $1,449.
D.	A returned check for $1,450 with the statement had been incorrectly recorded by Pala Medical Co. as $145. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
MI.	A check written for $290 had been mistakenly charged by the bank as $920.
F.	Bank service charges for June were $40.

Instructions

1.

Prepare a bank reconciliation. Please refer to the list of amount descriptions provided for the exact wording of the answer options for text entries. For those cells in which you must enter subtracted or negative numbers, use a minus sign.

2.

Journalize the necessary entries. Please refer to the Chart of Accounts for the exact wording of account titles.

3.

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

CHART OF ACCOUNTS

Pala Medical Company.

Ledger

	ASSETS
110	Money
111	Petty money
120	accounts receivable
131	Uncollectible documents
141	Merchandise inventory
145	Office supplies
146	supply store
151	prepaid insurance
181	Tierra
191	Office team
192	Accumulated Depreciation-Office Equipment
193	equipment store
194	Accumulated Depreciation Store Equipment

	PASSIVE
211	Accounts Payable-Skyline Supply Co.
221	Pay
222	interest to pay
231	Salaries to pay
241	Sales tax payable

EQUITY

310

Common actions

311

Retained earnings

312

dividends

313

Income Summary

Quantity Descriptions
adjusted balance
Bank error cashing check as $290 instead of $920
Bank failed to cash check as $920 instead of $290
bank service charges
Check for $920 returned for insufficient funds
Deposit of June 30, not registered by bank
Record Verification Failed
Error when registering the deposit of June 30
outstanding checks
Proceeds from the promissory note collected by the bank, including interest of $1449
total adjustments

1. Prepare a bank reconciliation. Please refer to the list of amount descriptions provided for the exact wording of the answer options for text entries. For those cells in which you must enter subtracted or negative numbers, use a minus sign.

1. Prepare a bank reconciliation. Please refer to the list of amount descriptions provided for the exact wording of the answer options for text entries. For those cells in which you must enter subtracted or negative numbers, use a minus sign.

Score: 57/108

Pala Medical Company.

Bank reconciliation

June 30, 20Y1

1	Cash balance according to bank statement		✔
2	Settings:
3	✔	✔
4	✔	✔
5	✔
6
7	✔
8
9	Cash balance according to company records		✔
10	Settings:
11		✔
12
13	✔
14
15	✔