Question

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

 E5-5 Part 1

 Required:

 1. Prepare a bank reconciliation. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $300. 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.

 E5-5 Part 3

 3. What is the balance in the Cash account after the reconciliation entries?

 E5-5 Part 4

 4. In addition to the balance in its bank account, Hills Company also has $100 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?

Answer 1

Solution 1:

Hills company
Bank Reconciliation
Jun-30
Bank statement			company's books
Ending balance per bank		$5,771	Ending balance per cash account		$5,600
Additions:			Additions:
Add: Deposits in Transit (17000-16900)	100
		$100			$0
		$5,871			$5,600
Deductions:			Deductions:
Less: Outstanding checks	300		Less: Service charge	29
		$300			$29
Upto date cash balance		$5,571	upto date cash balance		$5,571

Solution 3:

Cash balance = $5,571

Solution 4:

Total amount of cash = $5571 + $100 = $5,671