Bank Reconciliation and Entries The cash account for PalaMedical Co. at June 30, 20Y1, indicated a balance of $9,335. Thebank statement indicated a balance of $10,710 on June 30, 20Y1.Comparing the bank statement and the accompanying canceled checksand memos with the records revealed the following reconcilingitems: Checks outstanding totaled $3,860. A deposit of $4,020,representing receipts of June 30, had been made too late to appearon the bank statement. The bank collected $2,090 on a $1,980 note,including interest of $110. A check for $550 returned with thestatement had been incorrectly recorded by Pala Medical Co. as$500. The check was for the payment of an obligation to SkylineSupply Co. for a purchase on account. A check drawn for $50 hadbeen erroneously charged by the bank as $500. Bank service chargesfor June amounted to $55. Required: 1. Prepare a bankreconciliation. Pala Medical Co. Bank Reconciliation June 30, 20Y1Cash balance according to bank statement $ Adjustments: $ Totaladjustments Adjusted balance $ Cash balance according to company'srecords $ Adjustments: $ Total adjustments Adjusted balance $ 2.Journalize the necessary entries
(a.) that increase cash and (b.) that decrease cash. Theaccounts have not been closed. For a compound transaction, if anamount box does not require an entry, leave it blank. a. 20Y1 June30 b. June 30 3. If a balance sheet were prepared for Pala MedicalCo. on June 30, 20Y1, what amount should be reported as cash? $PreviousNext
