The cash account for Pala Medical Co. at June 30,20Y1, indicated a balance of $97,456. The bank statement indicated a balance of $127,960 on June he following reconciling items: a. Checks outstanding totaled $30,050. b. A deposit of $19,720, representing receipts of June 30 , had been made too late to appear on the bank statement. c. The bank collected $22,149 on a $20,700 note, including interest of $1,449. d. A check for $1,450 returned with the statement had been incorrectly recorded by Pala Medical Co, as $145. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $290 had been erroneously charged by the bank as $920. 1. Bank service charges tor June amounted to $40. Required: 1. Prepare a bank reconciliation. 2. Journalize the nocessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30,20Y1, what amount should be reported as cash? Chart of Accounts ASSETS REVENUE 110 Cash 410 Sales 111 Petty Cash 610 Interest Revenue 120 Accounts Receivable 131 Notes Receivable EXPENSES 141 Merchandise Inventory 510 Cost of Goods Sold 145 Office Supplies 515 Credit Card Expense 146 Store Supplies 516 Cash Short and Over 151 Prepaid Insurance 520 Salaries Expense 181 Land 531 Advertising Expense 191 Office Equipment 532 Delivery Expense 192 Accumulated Depreciation-Office Equipment 533 Insurance Expense 193 Store Equipment 534 Office Supplies Expense 194 Accumulated Depreciation-Store Equipment 535 Rent Expense 536 Repairs Expense LIABILITIES 537 Selling Expenses 211 Accounts Payable-Skyline Supply Co. 538 Store Supplies Expense 221 Notes Payable 561 Depreciation Expense-Office Equipment 222 Interest Payable 562 Depreciation Expense-Store Equipment 231 Salaries Payable 590 Miscellaneous Expense 241 Sales Tax Payable 710 Interest Expense EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends Labels and Amount Descriptions Labels For the Month Ended June 30,20Y1 June 30,20Y1 Amount Descriptions Adjusted balance Bank error in charging check as $920 instead of $290 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 $1,449 interest Total additions Total deductions Pala Medical Co. Bank Reconciliation (Label) Cash balance according to bank statement 2 3 4 5 6 7 8. Cash balance according to company's records 9 10 11 12 13 2. Joumalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash