The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 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 $33,700. b. A deposit of $18,900, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $22,042 on a $20,600 note, including interest of $1,442. d. A check for $1,600 returned with the statement had been incorrectly recorded by Pala Medical Co. as $160. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $680 had been erroneously charged by the bank as $860. f. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 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 $33,700. b. A deposit of $18,900, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $22,042 on a $20,600 note, including interest of $1,442. d. A check for $1,600 returned with the statement had been incorrectly recorded by Pala Medical Co. as $160. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $680 had been erroneously charged by the bank as $860. f. Bank service charges for June amounted to $40. Instructions 1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Need the answers to where it says (Instructions 1,2&3) thank you :)
Transcribed Image Text:The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $91,408. The bank statement indicated a balance of $126,590 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 $33,700.
b. A deposit of $18,900, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $22,042 on a $20,600 note, including interest of $1,442.
d. A check for $1,600 returned with the statement had been incorrectly recorded by Pala Medical Co. as $160. The check was for the payment of
an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $680 had been erroneously charged by the bank as $860.
f. Bank service charges for June amounted to $40.
Instructions
1. Prepare a bank reconciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries.
"Add:" & "Deduct:" will automatically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a
minus sign.
2. Journalize the necessary entries. Refer to the Chart of Accounts for exact wording of account titles.
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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