E6-5 Preparing a Bank Reconciliation and Journal Entries, and Reporting Cash [LO 6-4]

Hills Companys 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