Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hills Company's June 30 bank statement and the June ledger account for cash are summarized here: Withdrawals Deposits $25, 560 Balance, June 1 Deposits during

image text in transcribedimage text in transcribedimage text in transcribed

Hills Company's June 30 bank statement and the June ledger account for cash are summarized here: Withdrawals Deposits $25, 560 Balance, June 1 Deposits during June Cheques cleared during June Bank service charges Balance, June 30 Balance $ 9,000 34, 560 4,660 4, 450 4, 450 $29,900 210 Cash (A) June 1 June Balance Deposits 8,600 28,000 29, 960 Cheques written June June 30 Balance 6,640 Required: 1. Prepare a bank reconciliation. A comparison of the cheques written with the cheques that have cleared the bank shows outstanding cheques of $460. 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. HILLS COMPANY Bank Reconciliation June 30 Company's books Ending balance per cash account Additions: Bank statement Ending balance per bank statement Additions: Deposit in transit Deductions: Outstanding cheques Up-to-date cash balance Deductions: Bank service charge 0Up-to-date cash balance $ 2. Prepare the journal entry that should be made as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list Journal entry worksheet Record the journal entry that should be made as a result of the bank reconciliation. Note: Enter debits before credits. Transaction Debit Credit General Journal Office expenses Cash Record entry Clear entry View general journal 3. What is the balance in the Cash account after the reconciliation entries? Cash balance 4. In addition to the balance in its bank account, Hills Company also has $480 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? Cash

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Petroleum Accounting: Principles, Procedures; And Issues

Authors: Dennis Jennings, John Brady, Rich Shappard, Craig Friou

8th Edition

0940966328, 978-0940966321

More Books

Students also viewed these Accounting questions

Question

15.7 Explain the six steps in the termination interview

Answered: 1 week ago

Question

15.1 Define employee relations and employee engagement.

Answered: 1 week ago