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 30,2 Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling llems: 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. t. Bank service charges tor June amounted to $55. Required: 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Yt, what amount should be reported as cash? Chart of Accounts CHART OF ACCOUNTS Pala Medical Co. General Ledger \begin{tabular}{lll} 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 Oflice Equipment & 532 Delivery Expense \\ 192 Accumulated Dopreciation-Office Equipment & 533 Insurance Expense \\ 193 Store Equipment & 534 Office Supplies Expense \\ 194 Accumulated Depreclation-Store Equipment & 535 Rent Expense \\ \hline LlABILITIES & 536 Repairs Expense \\ \hline 211 Accounts Payable-Skyline Supply Co. & 537 Selling Expenses \\ 221 Notes Payable & 538 Store Supplies Expense \\ \end{tabular} Chart of Accounts 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 $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 1. Prepare a bank reconciliation. Bank Reconcillation Instructions 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? 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 30,2 Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling llems: 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. t. Bank service charges tor June amounted to $55. Required: 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Yt, what amount should be reported as cash? Chart of Accounts CHART OF ACCOUNTS Pala Medical Co. General Ledger \begin{tabular}{lll} 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 Oflice Equipment & 532 Delivery Expense \\ 192 Accumulated Dopreciation-Office Equipment & 533 Insurance Expense \\ 193 Store Equipment & 534 Office Supplies Expense \\ 194 Accumulated Depreclation-Store Equipment & 535 Rent Expense \\ \hline LlABILITIES & 536 Repairs Expense \\ \hline 211 Accounts Payable-Skyline Supply Co. & 537 Selling Expenses \\ 221 Notes Payable & 538 Store Supplies Expense \\ \end{tabular} Chart of Accounts 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 $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 1. Prepare a bank reconciliation. Bank Reconcillation Instructions 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