Question

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. a. 20Y1 June 30 Cash Notes Receivable Interest Revenue b. June 30 Accounts Payable-Skyline Supply Co. Miscellaneous Expense Cash Feedback 3. If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?

Answer 1

There is some information missing and I looked up it. If the numbers are not exactly the same, you adjust them to your question.

• The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436.
• The bank collected $26,500 on a $25,000 note, including interest of $1,500.
• A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account.
• Bank service charges for June amounted to $55.

Answer:

June 30, 20Y1

Dr Cash 26,500

Cr Notes receivable 25,000

Cr Interest revenue 1,500

Dr Cash 3,600

Cr Accounts receivable 3,600

Dr Bank fees expense 55

Cr Cash 55

If a balance sheet were prepared for Pala Medical Co. on June 30, 20Y1, what amount should be reported as cash?

$166,436 + $26,500 + $3,600 - $55 = $196,481