(There are two parts, but it just allow me to put one picture, so the picture is of the second part)

Bank Reconciliation and Entries

The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $14,725. The bank statement indicated a balance of $17,420 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:

1. Checks outstanding totaled $6,270.
2. A deposit of $6,530, representing receipts of June 30, had been made too late to appear on the bank statement.
3. The bank collected $3,400 on a $3,220 note, including interest of $180.
4. 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.
5. A check drawn for $40 had been erroneously charged by the bank as $400.
6. Bank service charges for June amounted to $35.

Required:

Question Content Area

1. Prepare a bank reconciliation.

Cash balance according to bank statement	blank	$fill in the blank d93772075018fb9_1
Adjustments:	blank	blank
Bank service chargesDeposit of June 30, not recorded by bankError in recording check.Proceeds of note collected by bank, including $180 interestDeposit of June 30, not recorded by bank	$Deposit of June 30, not recorded by bank
Bank error in charging check as $400 instead of $40Bank service chargesError in recording check.Proceeds of note collected by bank, including $180 interestBank error in charging check as $400 instead of $40	Bank error in charging check as $400 instead of $40	blank
Bank service chargesError in recording check.Proceeds of note collected by bank, including $180 interestOutstanding checksOutstanding checks	Outstanding checks	blank
Total adjustments	blank	fill in the blank d93772075018fb9_8
Adjusted balance	blank	$fill in the blank d93772075018fb9_9
Cash balance according to company's records	blank	$fill in the blank d93772075018fb9_10
Adjustments:	blank	blank
Bank error in charging check as $400 instead of $40Deposit of June 30, not recorded by bankProceeds of note collected by bank, including $180 interestOutstanding checksProceeds of note collected by bank, including $180 interest	$Proceeds of note collected by bank, including $180 interest	blank
Bank error in charging check as $400 instead of $40Deposit of June 30, not recorded by bankError in recording check.Outstanding checksError in recording check.	Error in recording check.
Bank error in charging check as $400 instead of $40Deposit of June 30, not recorded by bankBank service chargesOutstanding checksBank service charges	Bank service charges	blank
Total adjustments	blank	fill in the blank d93772075018fb9_17
Adjusted balance	blank	$fill in the blank d93772075018fb9_18

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.

a. 20Y1 June 30	Accounts ReceivableCashInterest ReceivableInterest RevenueNotes ReceivableCash
	CashInterest PayableInterest ReceivableNotes PayableNotes ReceivableNotes Receivable
	CashInterest PayableInterest ReceivableInterest RevenueNotes PayableInterest Revenue
b. June 30	Accounts Payable-Skyline Supply Co.Accounts Receivable-Skyline Supply Co.CashNotes PayablePetty CashAccounts Payable-Skyline Supply Co.
	Notes Receivable-Skyline Supply Co.CashMiscellaneous ExpenseNotes PayableCash Short or OverMiscellaneous Expense
	Accounts Payable-Skyline Supply Co.Accounts Receivable-Skyline Supply Co.CashNotes PayablePetty CashCash

Question Content Area

3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash? $fill in the blank 640640029fc7047_1Feedback Area

2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank. a. b. 3. If a balance sheet were prepared for Pala Medical Co. on June 30,20Y1, what amount should be reported as cash? $ Progress: 3/3 items Assignment Score: 55.45%