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  

Required: 1.

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. .