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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
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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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