Question

Required information [The following information applies to the questions displayed below.) Hills Company's June 30 bank statement and the June ledger account for cash are summarized here: BANK STATEMENT Checks Deposits $17,200 Balance, June 1 Deposits during June Checks cleared during June Bank service charges Balance, June 30 Other Balance $ 7,040 24, 240 5,940 $30 5,910 5,910 $18,300 June 1 June Balance Deposits Balance Cash (A) 7,040 17,400 18,600 5,840 Checks written June June 30 Required: 1. Prepare a bank reconciliation. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $300. 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.

Answer 1

Answer to Requirement 1: HILLS COMPANY Bank Reconciliation June 30 Company's Books 5,910 Ending balance per cash account Additions: $ 5,840 Bank Statement Ending balance per bank statement Additions: Deposit in transit 200 $ 5,840 Deductions Outstanding checks 200 6,110 Deductions: Bank service charges 300 5,810 Up-to-date cash balance $ 300 30 $ $ $ $ 30 5,810 Up-to-date cash balance Debit Credit Answer to Requirement 2: Transaction General Journal Office Expenses Cash $ 30 Answer to Requirement 3: Cash balance = $5,810 Answer to Requirement 4: Total amount of cash = Cash balance + Petty cash Total amount of cash = $5,810 + $140 Total amount of cash = $5,950