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, 2011 Comparing 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. Adeposit 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 $1925. d. Acheck for $1,350 returned 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 Acheck drawn for $570 had been erroneously charged by the bank as $750 I Bank service charges for June amounted to $40 CHART OF ACCOUNTS Pala Medical Co. General Ledger ASSETS 110 Cash REVENUE 410 Sales 610 Interest Revenue 111 Petty Cash 120 Accounts Receivable 131 Notes Receivable EXPENSES 510 Cost of Merchandise Sold 141 Merchandise Inventory 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Office Equipment 192 Accumulated Depreciation Office Equipment 193 Store Equipment 194 Accumulated Depreciation Store Equipment 510 Cost of Merchandise Sold 515 Credit Card Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 532 Delivery Expense 533 Insurance Expense 534 Office Supplies Expense 535 Rent Expense 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense LIABILITIES 211 Accounts Pavable-Skyline Supply Co. LIABILITIES 211 Accounts Payable-Skyline Supply Co. 221 Notes Payable 222 Interest Payable 231 Salaries Payable 241 Sales Tax Payable 536 Repairs Expense 537 Selling Expenses 538 Store Supplies Expense 561 Depreciation Expense-Office Equipment 562 Depreciation Expense-Store Equipment 590 Miscellaneous Expense 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Pala Medical Co. Bank Reconciliation June 30, 2011 1 Cash balance according to bank statement 2 2 3 5 6 7 & Cash balance according to company's records 9 10 11 12 13 JOURNAL CREDIT ASSETS POST. REF DEBIT EQUITY LIABILITIES DESCRIPTION DATE 1 2