The cash account for Pitt Corporation contains the following information for June:
Cash balance, 5/31 ........................................ $18,130
Cash received during June ................................. 42,650
................................................................$60,780
Cash disbursements during June:
Check 8255........................................ $17,850
Check 8256.......................................... 22,375
Check 8257........................................... 9,620
Check 8258........................................... 2,735.... 52,580
Cash balance, 6/30............................................. $ 8,200
The bank statement for April contains the following information:
Bank balance, 5/31 ............................................................... $34,525
Add: Deposits during June ....................................................... 42,650
............................................. ......................................... $77,175
Less: Checks paid during June:
Check 8253 ............................................. $ 1,720
Check 8254 ............................................. 14,675
Check 8255 ............................................. 17,850
Check 8256 ............................................. 22,375 ........... 56,620
Bank balance, 6/30 ........................................................ $20,555
Required:
Assuming there were no deposits in transit at May 31 and that all outstanding checks at May 31 cleared during June, do the following:
1. Identify the outstanding checks at June 30.
2. Prepare the reconciliation of the bank and cash account balances at June 30.
3. Identify the outstanding checks at May 31.
4. Prepare the reconciliation of the bank and cash account balances at May 31.
5. Why could you not perform the bank reconciliations without knowing that there were no deposits in transit on May 31 and that all outstanding checks at May 31 cleared during June?