Hills Company's June 30, 2014, bank statement and the June ledger account for cash are summarized here:

Required:
1. Prepare a bank reconciliation. A comparison of the cheques written with the cheques that have cleared the bank shows outstanding cheques of $700. Some of the cheques 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.
2. Give any journal entries that should be made as a result of the bank reconciliation.
3. What is the balance in the Cash account after the reconciliation entries?
4. In addition to the balance in its bank account, Hills Company also has $300 cash on hand. This amount is recorded in a separate T-account called Cash on Hand. What is the total amount of cash that should be reported on the balance sheet at June 30?

Transcribed Image Text:

Withdrawals Deposits Balance Balance, June 1,2014 Deposits during June Cheques cleared during June Bank service charges Balance, June 30, 2014 25,200 6,100 6,070 6,070 $18,000 $19,100 Cash (A) Balance Deposits June 1 6,800 Cheques written June 19,000 19,400 June June 30 Balance 6,400