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.
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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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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:
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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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