The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
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.
f.
Bank service charges for June amounted to $55.
1.
Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
2.
Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.
3.
If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
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