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The cash account for Pala Medical Co. at June 30, 2021, indicated a balance of $9,135. The bank statement indicated a balance of $10,550 on June 30, 2021. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding. b. A deposit, representing receipts of June 30, had been made too $ late to appear on the bank statement. c. The bank collected $2,060 on a $1,950 note, including interest of $110. d. A check written for payment on a purchase of $880 had been incorrectly recorded by Pala Medical Co. as $800. e. A check written for payment on a purchase of $40 had been erroneously charged by the bank as $400. f. Bank service charges for June. $ 3,800 3,960 $ 2,060 $ 1,950 110 880 800 40 400 S $ S $ $ S 45 Prepare a bank reconciliation. Balance per Books + Collections by bank - Error by Company - Bank Service Charge Adjusted Cash Balance c. Cash $ 9,135 $ 2,060 Prepare the necessary journal entries. $ 2,060 S (80) S (45) $ 11,070 d. Cash Over & Short Cash Note Receivable Interest Revenue f. Miscellaneous Expense S Cash 80 45 $ 1,950 $ 110 $ $ 80 45 Balance per Bank + DIT + Error by Bank + Outstanding Checks Adjusted Cash Balance $ 10,550 S 3,960 S 360 $ (3,800) $ 11,070

The cash account for Pala Medical Co. at June 30, 2021, indicated a balance of $9,135. The bank statement indicated a balance of $10,550 on June 30, 2021. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding. b. A deposit, representing receipts of June 30, had been made too $ late to appear on the bank statement. c. The bank collected $2,060 on a $1,950 note, including interest of $110. d. A check written for payment on a purchase of $880 had been incorrectly recorded by Pala Medical Co. as $800. e. A check written for payment on a purchase of $40 had been erroneously charged by the bank as $400. f. Bank service charges for June. $ 3,800 3,960 $ 2,060 $ 1,950 110 880 800 40 400 S $ S $ $ S 45 Prepare a bank reconciliation. Balance per Books + Collections by bank - Error by Company - Bank Service Charge Adjusted Cash Balance c. Cash $ 9,135 $ 2,060 Prepare the necessary journal entries. $ 2,060 S (80) S (45) $ 11,070 d. Cash Over & Short Cash Note Receivable Interest Revenue f. Miscellaneous Expense S Cash 80 45 $ 1,950 $ 110 $ $ 80 45 Balance per Bank + DIT + Error by Bank + Outstanding Checks Adjusted Cash Balance $ 10,550 S 3,960 S 360 $ (3,800) $ 11,070

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A B с D E F G 1 The cash account for Pala Medical Co. at June 30, 2021, indicated a balance of 2 $9,135. The bank statement indicated a balance of $10,550 on June 30, 2021. 3 Comparing the bank statement and the accompanying canceled checks and 4 memos with the records revealed the following reconciling items: 5 6 a. Checks outstanding. b. A deposit, representing receipts of June 30, had been made too 7 late to appear on the bank statement. 8 9 10 11 d. A check written for payment on a purchase of $880 had been 12 incorrectly recorded by Pala Medical Co. as $800. 13 e. A check written for payment on a purchase of $40 had been 14 erroneously charged by the bank as $400. 15 f. Bank service charges for June. 16 17 18 19 20 21 c. The bank collected $2,060 on a $1,950 note, including interest of $110. $ $ $ $ $ $ 96 $ $ $ $ 3,800 3,960 2,060 1,950 110 880 800 40 400 45 H I - J Prepare a bank reconciliation. K Balance per Books + Collections by bank Error by Company Bank Service Charge Adjusted Cash Balance c. Cash Prepare the necessary journal entries. d. Cash Over & Short Cash $ 9,135 $ 2,060 $ (80) (45) f. Miscellaneous Expense Cash $ $ 11,070 Note Receivable Interest Revenue L $ 2,060 $ GA $ 80 45 $ 1,950 $ 110 M $ 80 GA $ 45 N O P Balance per Bank + DIT + Error by Bank + Outstanding Checks Adjusted Cash Balance $ R 10,550 $ 3,960 $ $ 360 (3,800) $ 11,070 S T
Transcribed Image Text:A B с D E F G 1 The cash account for Pala Medical Co. at June 30, 2021, indicated a balance of 2 $9,135. The bank statement indicated a balance of $10,550 on June 30, 2021. 3 Comparing the bank statement and the accompanying canceled checks and 4 memos with the records revealed the following reconciling items: 5 6 a. Checks outstanding. b. A deposit, representing receipts of June 30, had been made too 7 late to appear on the bank statement. 8 9 10 11 d. A check written for payment on a purchase of $880 had been 12 incorrectly recorded by Pala Medical Co. as $800. 13 e. A check written for payment on a purchase of $40 had been 14 erroneously charged by the bank as $400. 15 f. Bank service charges for June. 16 17 18 19 20 21 c. The bank collected $2,060 on a $1,950 note, including interest of $110. $ $ $ $ $ $ 96 $ $ $ $ 3,800 3,960 2,060 1,950 110 880 800 40 400 45 H I - J Prepare a bank reconciliation. K Balance per Books + Collections by bank Error by Company Bank Service Charge Adjusted Cash Balance c. Cash Prepare the necessary journal entries. d. Cash Over & Short Cash $ 9,135 $ 2,060 $ (80) (45) f. Miscellaneous Expense Cash $ $ 11,070 Note Receivable Interest Revenue L $ 2,060 $ GA $ 80 45 $ 1,950 $ 110 M $ 80 GA $ 45 N O P Balance per Bank + DIT + Error by Bank + Outstanding Checks Adjusted Cash Balance $ R 10,550 $ 3,960 $ $ 360 (3,800) $ 11,070 S T
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