E5-5 Preparing a Bank Reconciliation and Journal Entries and Reporting Cash [LO 5-4]

[The following information applies to the questions displayed below.]

Hills Companys June 30 bank statement and the June ledger account for cash are summarized here:

BANK STATEMENT
	Checks			Deposits			Other			Balance
Balance, June 1										$	7,380
Deposits during June				$	18,900						26,280
Checks cleared during June	$	20,000									6,280
Bank service charges							$	31			6,249
Balance, June 30											6,249

Cash (A)

June 1	Balance	6,890
June	Deposits	20,800		20,300	Checks written June
June 30	Balance	7,390

Required:
1.	Prepare a bank reconciliation. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $790. 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.

2. Record the service charges of $31 deducted by the bank.

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 $440 of petty cash on hand. This amount is recorded in a separate T-account called Petty Cash on Hand. What is the total amount of cash that should be reported on the balance sheet at June 30?

HILLS COMPANY Bank Reconciliation June 30 Bank Statement Company's Books Ending Balance per Bank Statement Additions Ending Balance per Cash Account Additions Deductions: Deductions Up-to-Date Cash Balance Up-to-Date Cash Balance