he cash account for Online Medical Co. at June 30, 2012, indicateda balance of $9,375. The bank statement indicated a balance of$10,760 on June 30, 2012. Comparing the bank statement and theaccompanying canceled checks and memos with the records revealedthe following reconciling items: 1. Checks outstanding totaled$3,900.
2. A deposit of $4,000, representing receipts of June 30, had beenmade too late to appear on the bank statement.
3. The bank had collected $2,100 on a note left for collection. Theface of the note was $2,000.
4. A check for $550 returned with the statement had beenincorrectly recorded by Online Medical Co. as $500. The check wasfor the payment of an obligation to Hirsch Co. for the purchase onaccount.
5. A check drawn for $60 had been erroneously charged by the bankas $600.
6. Bank service charges for June amounted to $25.
2. A deposit of $4,000, representing receipts of June 30, had beenmade too late to appear on the bank statement.
3. The bank had collected $2,100 on a note left for collection. Theface of the note was $2,000.
4. A check for $550 returned with the statement had beenincorrectly recorded by Online Medical Co. as $500. The check wasfor the payment of an obligation to Hirsch Co. for the purchase onaccount.
5. A check drawn for $60 had been erroneously charged by the bankas $600.
6. Bank service charges for June amounted to $25.
Related questions
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $14,110. The bank statement indicated a balance of $16,730 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items:
Checks outstanding totaled $6,020.
A deposit of $6,270, representing receipts of June 30, had been made too late to appear on the bank statement.
The bank collected $3,260 on a $3,100 note, including interest of $160.
A check for $880 returned with the statement had been incorrectly recorded by Pala Medical Co. as $800. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
A check drawn for $30 had been erroneously charged by the bank as $300.
Bank service charges for June amounted to $40.
1. Prepare a bank reconciliation.
| Pala Medical Co. | ||||||||||||||||||||||||||
| Bank Reconciliation | ||||||||||||||||||||||||||
| June 30, 20Y1 | ||||||||||||||||||||||||||
| Cash balance according to bank statement | $ | |||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Deposit of June 30, not recorded by bank | $ | |||||||||||||||||||||||||
| Bank error in charging check as $300 instead of $30 | ||||||||||||||||||||||||||
| Outstanding checks | ||||||||||||||||||||||||||
| Total adjustments | ||||||||||||||||||||||||||
| Adjusted balance | $ | |||||||||||||||||||||||||
| Cash balance according to company's records | $ | |||||||||||||||||||||||||
| Adjustments: | ||||||||||||||||||||||||||
| Proceeds of note collected by bank, including $160 interest | $ | |||||||||||||||||||||||||
| Error in recording check. | ||||||||||||||||||||||||||
| Bank service charges | ||||||||||||||||||||||||||
| Total adjustments | ||||||||||||||||||||||||||
| Adjusted balance 2. Journalize the necessary entries (a.) that increase cash and (b.) that decrease cash. The accounts have not been closed. For a compound transaction, if an amount box does not require an entry, leave it blank.
| $ | |||||||||||||||||||||||||
