The Dalik slalemenl mdic Daik SalemenL anu trie owing reconciling items: totaled $30.060. representing receipts of June 30, had been made too late to appear on the bank statement. 24,075 on a $22,500 note, including interest of $1,575. eturned with the statement had been incorrectly recorded by Pala Medical Co. as $180. The check was for the payment of ne Supply Co. for a purchase on account. 190 had been erroneously charged by the bank as $930. s for June amounted to $50. nciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" matically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus
The Dalik slalemenl mdic Daik SalemenL anu trie owing reconciling items: totaled $30.060. representing receipts of June 30, had been made too late to appear on the bank statement. 24,075 on a $22,500 note, including interest of $1,575. eturned with the statement had been incorrectly recorded by Pala Medical Co. as $180. The check was for the payment of ne Supply Co. for a purchase on account. 190 had been erroneously charged by the bank as $930. s for June amounted to $50. nciliation. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. "Add:" matically appear if it is required. For those boxes in which you must enter subtracted or negative numbers use a minus
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
Chapter6: Bank Accounts, Cash Funds, And Internal Controls
Section: Chapter Questions
Problem 5PA
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![The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $93,115. The bank statement indicated a balance of $125,800 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 $30,080.
b. A deposit of $19,240, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $24,075 on a $2,500 note, including interest of $1,575.
d. A check for $1,800 returned with the statement had been incorrectly recorded by Pala Medical Co. as $180. The check was for the payment of
an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $390 had been erroneously charged by the bank as $930.
f. Bank service charges for June amounted to $50.
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?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F6795bcee-481e-4cd9-9402-1dd9d1389a86%2F9a0d4ce4-4a7a-4e2a-be79-d5118933795f%2Fj9mt4a_processed.png&w=3840&q=75)
Transcribed Image Text:The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $93,115. The bank statement indicated a balance of $125,800 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 $30,080.
b. A deposit of $19,240, representing receipts of June 30, had been made too late to appear on the bank statement.
c. The bank collected $24,075 on a $2,500 note, including interest of $1,575.
d. A check for $1,800 returned with the statement had been incorrectly recorded by Pala Medical Co. as $180. The check was for the payment of
an obligation to Skyline Supply Co. for a purchase on account.
e. A check drawn for $390 had been erroneously charged by the bank as $930.
f. Bank service charges for June amounted to $50.
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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