Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here: BANK STATEMENT ChecksDepositsOtherBalanceBalance, June 1 $7,300 Deposits during June $18,500 25,800 Checks cleared during June$19,600 6,200 Bank service charges $31 6,169 Balance, June 30 6,169 Cash (A)June 1Balance7,300 JuneDeposits20,00019,900Checks writtenJuneJune 30Balance7,400 Required: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.

Bank statement is prepared by bank, but companies maintains its own records from its own…

Answered: Hills Company’s June 30 bank statement…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 4PA

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Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here:

BANK STATEMENT
	Checks	Deposits	Other	Balance
Balance, June 1								$	7,300
Deposits during June				$	18,500				25,800
Checks cleared during June	$	19,600							6,200
Bank service charges						$	31		6,169
Balance, June 30									6,169

Cash (A)
June 1	Balance	7,300
June	Deposits	20,000	19,900	Checks written	June
June 30	Balance	7,400

Required:

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.

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Prepare any journal entries that should be made as a result of the bank reconciliation.

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