Bank Reconciliation (Partial) The cash account for Pitt Corporation contains the following information for June: Cash balance, 5/31 $14,685 Cash received during June 52,455 $67,140 Cash disbursements during June: Check 8255 $33,500 Check 8256 11,250 Check 8257 18,750 Check 8258 900 64,400 Cash balance, 6/30 $2,740 The bank statement for April contains the following information: Bank balance, 5/31 $28,510 Add: Deposits during June 52,455 $80,965 Less: Checks paid during June: Check 8253 $8,400 Check 8254 5,425 Check 8255 33,500 Check 8256 11,250 58575 Bank balance, 6/30 $22,390 Required: Assuming there were no deposits in transit at May 31 and that all outstanding checks at May 31 cleared during June, do the following: 1. Identify the outstanding checks at June 30. 2. Prepare the reconciliation of the bank and cash account balances at June 30. Pitt CorporationBank ReconciliationJune 30 $Cash balance from bank statement Less: Outstanding check 8257 Outstanding check 8258 Outstanding check 8258 Adjusted cash balance $fill in the blank 6da4e200d07cf87_8 identify the outstanding checks at May 31 4. Prepare the reconciliation of the bank and cash account balances at May 31. Pitt CorporationBank ReconciliationMay 31 $- Select - Less: $- Select - - Select - - Select - Adjusted cash balance $fill in the blank a45a39006001fec_8 $- Select -

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Bank Reconciliation (Partial)

The cash account for Pitt Corporation contains the following information for June:

Cash balance, 5/31			$14,685
Cash received during June			52,455
			$67,140
Cash disbursements during June:
	Check 8255	$33,500
	Check 8256	11,250
	Check 8257	18,750
	Check 8258	900		64,400
Cash balance, 6/30			$2,740

The bank statement for April contains the following information:

Bank balance, 5/31			$28,510
Add: Deposits during June			52,455
			$80,965
Less: Checks paid during June:
	Check 8253	$8,400
	Check 8254	5,425
	Check 8255	33,500
	Check 8256	11,250		58575
Bank balance, 6/30			$22,390

Required:

Assuming there were no deposits in transit at May 31 and that all outstanding checks at May 31 cleared during June, do the following:

1. Identify the outstanding checks at June 30.

2. Prepare the reconciliation of the bank and cash account balances at June 30.

Pitt CorporationBank ReconciliationJune 30

		$Cash balance from bank statement
Less:
	Outstanding check 8257
	Outstanding check 8258	Outstanding check 8258
Adjusted cash balance		$fill in the blank 6da4e200d07cf87_8

identify the outstanding checks at May 31

4. Prepare the reconciliation of the bank and cash account balances at May 31.

Pitt CorporationBank ReconciliationMay 31

		$- Select -
Less:
	$- Select -
	- Select -	- Select -
Adjusted cash balance		$fill in the blank a45a39006001fec_8
		$- Select -

Expert Solution

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Bank reconciliation refers to the matching the own maintained books for business transaction and bank pass book for all transaction done from bank. It is done to check accuracy of books and to determine fraud activities.

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