The cash account for Pala Medical Co. at June 30,20Y1, indicated a balance of $166,436. The indicated a balance of $195,688 on June 30,20Y1. Comparing the bank statement an the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $19,427. b. A deposit of $12,300, representing receipts of June 30 , had been made too late to appear on the bank statement. c. The bank collected $26,500 on a $25,000 note, including interest of $1,500. d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $195 had been erroneously charged by the bank as $915. f. Bank service charges for June amounted to $55. 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 $915 instead of $195 Bank service charges Deposit in transit on June 30 Error in recording check Note collected by bank, including $1,500 interest Outstanding checks Total additions Total deductions Bank Reconciliation Bank Reconciliation June 30,20Y1 \begin{tabular}{|l|l|l|l|} \hline 1 & Cash balance according to bank statement & & $195,688.00 \\ \hline 2 & Add: Deposit in transit on June 30 & $12,300.00 & \\ \hline 3 & & \\ \hline 4 & & \\ \hline 5 & & \\ \hline 6 & \\ \hline 7 & & \\ \hline 8 & Cash balance according to company's records \\ \hline 9 & & \\ \hline 10 & & \\ \hline 11 & & \\ \hline 12 & & \\ \hline 13 & & \\ \hline \end{tabular}