Hills Companys June 30 bank statement and the June ledger account for cash are summarized...
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Hills Companys June 30 bank statement and the June ledger account for cash are summarized here:
1) Prepare a bank reconciliation. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $730. Some of the checks that cleared in June were written prior to June. No deposits in transit were noted in May, but a deposit is in transit at the end of June.
2) Prepare any journal entries that should be made as a result of the bank reconciliation.
3) What is the balance in the Cash account after the reconciliation entries?
4) In addition to the balance in its bank account, Hills Company also has $350 of petty cash on hand. This amount is recorded in a separate T-account called Petty Cash on Hand. What is the total amount of cash that should be reported on the balance sheet at June 30?
BANK STATEMENT Checks Deposits other Balance Balance, June 1 7260 $18,300 Deposits during June 25,560 Checks cleared during June $19,400 6.160 $31 Bank service charges 6.129 Balance, June 30 6.129 Cash (A) 6,830 June 1 Balance 19,600 19.700 June Deposits Checks written June June Balance 6,730 30
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2) Prepare any journal entries that should be made as a result of the bank reconciliation.