Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30

Question

Bank Reconciliation and Entries The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $11,260. The bank statement indicated a balance of $13,270 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 $4,780. b. A deposit of $4,980, representing receipts of June 30, had been made too late to appear on the bank statement c. The bank collected $2,590 on a $2,450 note, including interest of $140. d. A check for $660 returned with the statement had been incorrectly recorced by Pala Medical Co. as $600. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account e. A check drawn for $30 had been erroneously charged by the bank as $300. f. Bank service charges for June amounted to $50. Required: 1. Prepare a bank reconciliation. Pala Medical Co Bank Reconcliation Cash balance according to bank statement 13,270 Outstanding checks Total adjustments Adjusted balance Cash balance according to company's records

Explanation / Answer

1.

ADJUSTMENTS

2.JOURNAL ENTRIES

3. CASH BALANCE TO BE REPORTED ON JUNE 30,20Y1 IS $13740

BANK RECONCIALTION STATEMENT

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