Show Me How Bank Reconcilation and Entries The cash account for Pala Medical Co.
ID: 2579698 • Letter: S
Question
Show Me How Bank Reconcilation and Entries The cash account for Pala Medical Co. at June 30, 20Yl, indicated a balance of $10,425. The bank statement Indicated a balance of $11,00 statement and the accompanying canceled checks and memos with the records revealed the following recondling items: a. Checks outstanding totaled $4,210 b. A deposit of $4,390, representing receipts of June 30, had been made too late to appear on the bank statement c The bank collected $2,280 on a $2,160 note, including interest of $120 d. A check for sseo returned with the statement had been nometiy eoded eda. , s y recorded by Pala Medical , as $800. The check was for the payment ca obligation to Skyline Supply Co. for a purchase on account e. A check drawn for $80 had been erroneously charged by the bank as $800. f. Bank service charges for June amounted to $25 Required 1. Prepare a bank reconciliation Pala Medical Co Bank Recondiliation Cash balance according to bank statement Total adjustments l work saved 3 5 6 8 9 0Explanation / Answer
Pala Medical Co.
Bank Reconciliation
Junu 30, 20Y1
Cash balance according to bank statement $ 11,700
Adjustments:
Outstanding checks - 4210 (a)
Deposit in transit + 4390 (b)
bank errors in charging check + 720 (e)
Total Adjustments $ 900
Adjusted Balance $ 12,600
Cash balance as per company's record $10,445
Adjustments:
Bank service charge - 25 (f)
Error in recording checks -80 (d)
Proceeds of note collected by bank including interest +2280 (c)
total adjustments 2175
Adjusted balance $12,600
2. Journalize the necessary entries (a) that increase cash (b) that decrease cash
(a)20Y1 June 30 Cash 2280
notes receivable 2160
Interest Revenue 120
(b) June 30 A/P-Skyline supply Co. 80
Miscellaneous Expense 25
Cash 105
3. If a balance sheet was prepared for pala Medical Co. on June 30, 20Y1, what amount shall be reported as cash?
ans $ 12,600