The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $9,250. The bank statement indicated a balance of $10,480 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 $3,770. b. A deposit of $3,930, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $2,040 on a $1,940 note, including interest of $100. d. A check for $550 returned with the statement had been incorrectly recorded by Pala Medical Co. as $500. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $60 had been erroneously charged by the bank as $600. f. Bank service charges for June amounted to $60. Required: 1. Prepare a bank reconciliation. Pala Medical Co. Bank Reconciliation June 30, 20Y1 Cash balance according to bank statement 10,480 Adjustments: Deposit of June 30, not recorded by bank Bank error in charging check as $600 instead of $60 Outstanding checks Total adjustments Adjusted balance Cash balance according to company's records Adjustments: Proceeds of note collected by bank, including $100 interest Error in recording check. Bank service charges Adjusted balance Total adjustments 3,930 540 3,770 8,240 X