The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $85,920. The bank statement indicated a balance of $127,910 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 $32,540.
B. A deposit of $18,540, representing receipts of June 30, had been made too late to appear on the bank statement.
C. The bank collected $29,425 on a $27,500 note, including interest of $1,925.
D. A check for $1,350 returned with the statement had been incorrectly recorded by Pala Medical Co. as $135. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
E. A check drawn for $570 had been erroneously charged by the bank as $750.
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. 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.

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