Question

Bank reconciliation and entries Chart of Accounts Amount Descriptions Bank Reconciliation Journal Instructions The cash account for Pala Medical Coat June 30, 2011, indicated a balance of $97,456. The bank statement indicated a balance of $127 960 on June 30, 2011 Comparing the bank statement and the accompanying canceled checks and memes with the records revealed the following reconciling tems a Checks outstanding totaled $30,050 A deposit of $19,720, representing receipt of June 30, had been made too late to appear on the bank statement The bank collected $22,149 on a $20,700 note, including interest of 51.449 d. A check for $1,450 velumed with the statement had been incorrectly recorded by Pain Medical Co as $145. The check was for the payment of an obligation to Skyline Supply Co for a purchase on account e. A check drawn for $290 had been erroneously charged by the bank as 5920 t Bank service charges for June amounted to $40 Instructions Previous Check My Work 3 more Check My Work uses remain ng

please help instructions are in the 2nd picture

Answer 1

Solution:

1.)

Bank Reconciliation Statement of Palpable Medical Co. at June 30, 20Y1

Cash account balance as at June 30, 20Y1		$97,456
+
Outstanding checks	$30,050
Collection of Notes Receivable by the bank	$20,700
Collection of interest on Notes Receivable	$1,449
Check returned (issued to Skyline Supply Co.)	$145	$52,344
-
Deposited checks in transit	$19,720
Correction of check to Skyline Supply Co.	$1,450
Excess amount wrongly charged by the bank ($920 instead of $290)	$630
Bank service charges for June debited by the bank	$40	$21,840
Balance as per bank statement		$127,960

2.) Journal Entries:

No.of event	Date	Account Title and Explanation	Debit ($)	Credit ($)
1.		Cash	22149
		Notes receivable		20,700
		Interest revenue		1,449
		(Collection of note with interest)
2.		Accounts payable	1,305
		Cash		1,305
		(Correction of wrong entry to Skyline Supply Co. $145 instead of $1,450)
3.		Bank Charges	$40
		Cash		$40
		(Bank service charges for June)

3.)

Computation of Cash Balance at June 30 after adjustment entries.

Cash balance as at 30th June		$97,456
Add:
Collection of Notes Receivable by the bank	$20,700
Collection of interest on Notes Receivable	$1,449
		$22,149
Less:
Correction of wrong entry to Skyline Supply Co.	$1,305
Bank charges for June	$40
		$1,345
Cash balance after adjustments		$118,260

If a balance sheet were prepared by for Palau Medical Co. on June 30, 20Y1:

The amount should be reported as cash = $118,260.