PR 7-3A Bank reconciliation and entries Obj. 5 The cash account for Pala Medical Co. at June 30, 2041, indicated a balance of $146,035. The bank statement indicated a balance of $181,965 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 $16,445. B. A deposit of $9,900, representing receipts of June 30, had been made too late to appear on the bank statement. C. The bank collected $31,800 on a $30,000 note, including interest of $1,800. D. A check for $2,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $200. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E. A check drawn for $170 had been erroneously charged by the bank as $710. F. Bank service charges for June amounted to $75. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 2011, what amount should be reported as cash? 4 1. PALA MEDICAL CO. Bank Reconciliation June 30, 2041 181.965 20 5 Cash balance according to bank statement Adjustments Deposit of June 30. not recorded by bank Bank error in charging check as $710 instead of 5170 Outstanding checks Total adjustments Adjusted balance 9,900 540 23 | Cash balance according to company's records Adjustments Total adjustments Adjusted balance 33 P B D 2. 54 35 36 37 38 June 30 39 40 41 30 3. 42 43 44 45 46 47 48 49 SO Amount to be reported on June 30, 20Y1. balance sheet