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The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of...

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The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $14,745. The bank statement indicated a balance of $17,430 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 $6,270 b. A deposit of $6,540, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $3,400 on a $3,220 note, including interest of $180. d. A check for $550 returned with the statement had been incorrectly recorded by Pala Medical Co. as $500. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $40 had been erroneously charged by the bank as $400. f. Bank service charges for June amounted to $35. Required: 1. Prepare a bank reconciliation. Pala Medical Co. Bank Reconciliation Cash balance according to bank statement Adjustments: Total adjustments Adjusted balance Cash balance according to company's records

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