PR 7-3A Bank reconciliation and entries Obj. 5 The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $146,035. The bank statement indicated a balance of $181,965 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 $16,445. B. A deposit of $9,900, representing receipts of June 30, had been made too late to appear on the bank statement. C The bank collected $31,800 on a $30,000 note, including interest of $1,800. D. A check for $2,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $200. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E A check drawn for $170 had been erroneously charged by the bank as $710. F. Bank service charges for June amounted to $75. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
PR 7-3A Bank reconciliation and entries Obj. 5 The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $146,035. The bank statement indicated a balance of $181,965 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 $16,445. B. A deposit of $9,900, representing receipts of June 30, had been made too late to appear on the bank statement. C The bank collected $31,800 on a $30,000 note, including interest of $1,800. D. A check for $2,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $200. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. E A check drawn for $170 had been erroneously charged by the bank as $710. F. Bank service charges for June amounted to $75. Instructions 1. Prepare a bank reconciliation. 2. Journalize the necessary entries. 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:PR 7-3A Bank reconciliation and entries
Obj. 5
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $146,035.
The bank statement indicated a balance of $181,965 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 $16,445.
B. A deposit of $9,900, representing receipts of June 30, had been made too late to appear on the bank statement.
C The bank collected $31,800 on a $30,000 note, including interest of $1,800.
D. A check for $2,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $200.
The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
E. A check drawn for $170 had been erroneously charged by the bank as $710.
F. Bank service charges for June amounted to $75.
Instructions
1. Prepare a bank reconciliation.
2. Journalize the necessary entries.
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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