TIN TI Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 2011, indicated a balance of $11,500. The bank statement indicated a balance of $13,440 on June 30, 2011. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $4,840. b. A deposit of $5,040, representing receipts of June 30, had been made too late to appear on the bank statement c. The bank collected $2,620 on a $2,490 note, including interest of $130. d. A check for $580 retumed with the statement had been incorrectly recorded by Pala Medical Co. as $800. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $40 had been erroneously charged by the bank as $400. 1. Bank service charges for Dune amounted to $40. Required: 1. Prepare a bank reconciliation Pala Medical Co Bank Reconciliation June 30, 2011 Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records Id. Cash balance according to company's records Adjustments: Total adjustments Adjusted balance 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. 2011 June 30 b. June 30 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 2011, what amount should be reported as cash? Instructions Beeler Furniture Company deposits all cash receipts each Wednesday and Friday in a night depository, after banking hours. The data required to reconcile the bank statement as of June 30, 2012, have been taken from various documents and records and are reproduced as follows. The sources of the data are printed in capital emers. Al checks were written for payments on account. CASH ACCOUNT: Balance as of June 1 CASH RECEIPTS FOR MONTH OF JUNE $9.317.40 59.223.75 DUPLICATE DEPOSIT TICKETS: Date and amount of each deposit in June Date June 1 Amount $1,080.50 Amount Date June 10 Amount $996.61 Date June 22 3 854.17 15 882.95 24 $897.34 94721 1.117.74 8 340.50 17 1.806.74 30 CHECKS WRITTEN Number and amount of each check issued in June: Amount Check NO. Amount Check No. Amount 740 $237.50 747 Void 754 $449.75 741 495.15 748 $450.90 755 272.75 742 501.90 749 640.13 756 113.95 743 761.30 750 276.77 757 407.95 744 506.88 751 299.37 758 259.60 745 117.25 752 537.01 759 901.50 746 298.66 753 380.95 486.39
