Prepare a bank reconciliation

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										$	7,300
Deposits during June				$	18,500						25,800
Checks cleared during June	$	19,600									6,200
Bank service charges							$	31			6,169
Balance, June 30											6,169

 

Cash (A)
June 1	Balance	7,300
June	Deposits	20,000	19,900	Checks written	June
June 30	Balance	7,400

 

Required:

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.

Solution: