The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

a.	Checks outstanding totaled $33,310.
b.	A deposit of $17,610, representing receipts of June 30, had been made too late to appear on the bank statement.
c.	The bank collected $28,248 on a $26,400 note, including interest of $1,848.
d.	A check for $1,100 returned with the statement had been incorrectly recorded by Pala Medical Co. as $110. 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 $45.

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

Amount Descriptions
Adjusted balance
Bank error in charging check as $860 instead of $680
Bank service charges
Deposit in transit on June 30
Deposit of June 30, not recorded by bank
Error in recording check
Outstanding checks
Note collected by bank, including $1,848 interest
Total additions
Total deductions

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.

June 30, 20Y1 $127,190.00 2 $17,610.00 1 Cash balance according to bank statement Add: Deposit in transit on June 30 Add: Bank error in charging check as $860 instead of $680 Outstanding checks 3 180.00 4 (33,310.00) 5 Deduct: Total deductions (15,520.00) 6 Adjusted balance $111,670.00 7 $84,457.00 9 $28,248.00 10 8 Cash balance according to company's records Add: Note collected by bank, including $1,848 interest Deduct: Error in recording check Deduct: Bank service charges Total deductions (990.00) (45.00) 11 12 (27,213.00) 13 Adjusted balance $111,670.00 The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $84,457. The bank statement indicated a balance of $127,190 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $33,310. b. A deposit of $17,610, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $28,248 on a $26,400 note, including interest of $1,848. d. A check for $1,100 returned with the statement had been incorrectly recorded by Pala Medical Co. as $110. 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 $45. 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 titles. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash? Amount Descriptions Adjusted balance Bank error in charging check as $860 instead of $680 Bank service charges Deposit in transit on June 30 Deposit of June 30, not recorded by bank Error in recording check Outstanding checks Note collected by bank, including $1,848 interest Total additions Total deductions