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 $7,180
Deposits during June $17,900 25,080
Checks cleared during June $19,000 6,080
Bank service charges $30 6,050
Balance, June 30 6,050

Cash (A)
June1 Balance 6,790
June Deposits 18,800 19,300 Checks written June
June 30 Balance 6,290

Required

a. Prepare a bank reconciliation. A comparison of the checks written with the checks that have been cleared the bank shows outstanding checks of $690. 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.
b. Prepare any journal entries that should be made as a result of the bank reconciliation - Record the service charges of $30 deducted by the bank .
c. What is the balance in the Cash account after the reconciliation entries?
d. In addition to the balance in its bank account, Hills Company, also has $280 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?

a.Bank reconciliation

Balance per bank statement as at June 30                                    $ 6,050

Add: Deposits in transit                                                                    $    900

Add: Bank service charges                                                              $      30

Less: Outstanding cheques                                                             $ (   690)

Balance as per cash book                                                               $ 6,290

b. Adjusting journal entries

Bank Service Fees                                                    $ 30

Cash                                                                                           $ 30

To record bank service fees charged by the bank

c. The balance in the cash account is $ 6,260

d. The total amount of cash on hand should be $ 6,540

Explanation:

The bank reconciliation is prepared starting from the  bank statement

and adjusting to arrive at the cash book balance prior to the adjustment.

The amount for the deposits in transit is calculated as under

Deposits per bank cash book  - Deposits per bank statement

$ 18,00 - $ 17,900 = $ 900  

The only entry required in the cash book is $ 30 for bank service charges, as the other items, deposits in transit and uncleared cheques are already recorded in the cash book.

The adjusted balance in the cash book is after deduction of the bank service fees. i.e $ 6,290 - $ 30 = $ 6,260

The cash on hand balance on the balance sheet aggregates the cash  balance and the petty cash balance.

$ 6,260 + $ 280 = $ 6,540

our agriculture industry and our business industry

lbc corporation makes and sells a product called product wz. each unit of product wz requires 4.1 hours of direct labor at the rate of $20.00 per direct labor-hour. management would like you to prepare a direct labor budget for june. the company plans to sell 28,000 units of product wz in june. the finished goods inventories o