Hills Company's June 30 bank statement and the June ledger account for cash are summarized here:
Required:
1. Prepare 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.
2. Give any journal entries that should be made as a result of the bank reconciliation.
3. What is the balance in the Cash account after the reconciliation entries?
4. 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?