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

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

BANK STATEMENT
	Checks			Deposits			Other			Balance
Balance, June 1										$	7,200
Deposits during June				$	18,000						25,200
Checks cleared during June	$	19,100									6,100
Bank service charges							$	30			6,070
Balance, June 30											6,070

Cash (A)

June 1	Balance	6,800
June	Deposits	19,000		19,400	Checks written     June
June 30	Balance	6,400

Prepare a bank reconciliation. A comparison of the checks written with the checks that have cleared the bank shows outstanding checks of $700. 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. Explanation: 1. Deposit in Transit = $19,000 – $18,000 = $1,000. 2. Prepare any journal entries 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.)   What is the balance in the Cash account after the reconciliation entries? Explanation: 3. The updated cash balance after the reconciliation entry is ($6,400 – $30) = $6,370. In addition to the balance in its bank account, Hills Company also has $300 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? Explanation: 4. Balance Sheet (June 30): Current Assets: Cash ($6,370 + $300) = $6,670