Preparing a Bank Reconciliation and Journal Entries, and Reporting Cash Hills CompanyAc€?cs June
Preparing a Bank Reconciliation and Journal Entries, and Reporting Cash
Hills CompanyAc€?cs June 30, 2013, bank statement and the June ledger account for cash are summarized here:
BANK STATEMENT Checks Deposits Other Balance Balance, June 1, 2013 $ 7,140 Deposits during June $ 17,700 24,840 Checks cleared during June $ 18,800 6,040 Bank service charges $ 30 6,010 Balance, June 30, 2013 6,010 Cash (A) June 1 Balance 6,770 June Deposits 18,400 19,100 Checks written June June 30 Balance 6,070
Prepare a bank reconciliation. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $670. 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. HILLS COMPANY Bank Reconciliation June 30, 2013 Bank Statement Company’s Books Ending Balance per Bank Statement Ending Balance per Cash Account Additions: Additions: Deductions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance
2.Prepare any journal entries that should be made as a result of the bank reconciliation. .