Part 1: 1. Identify and list the deposits in transit at the end of December.2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds4. Record the checks outstanding at the end of the month.5. Record the deposit in transit at the end of the month.Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet? Required informationPA5-3 (Algo) Identifying Outstanding Checks and Deposits in Transit and Preparing a BankReconciliation and Journal Entries [LO 5-4, LO 5-5][The following information applies to the questions displayed below.]The December bank statement and cash T-account for Stewart Company follow:BANK STATEMENTDateChecksDepositsOtherBalance$ 45,60038,000$ 7,600$ 27,000December 1December 6December 11December 17December 23December 26December 3053012,90064,47051,57035,00086,57053086,04017,80018,000 NSF*85,960December 31Interest earnedService charge86,020December 3185,890*NSF check from J. Left, a customer.Cash (A)DebitCreditDecember 1Balance45,600Checks written duringDecember:DepositsDecember 1127,0007,600December 2335,00053018,00012,900December 30December 3112,00053013017,8004,500December 31Balance93,610There were no deposits in transit or outstanding checks at November 30.S1 2 3< Prev4of 10$ 28060130www‒‒‒Next >

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College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

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Part 1: 1. Identify and list the deposits in transit at the end of December. 2. Identify and list the outstanding checks at the end of December. Part 2: Prepare a bank reconciliation for December. Part 3: 1. Record the interest of $60 received from the bank. 2. Record the service charges of $130 deducted by the bank. 3. Record the return of the J. Left check of $280 due to insufficient funds 4. Record the checks outstanding at the end of the month. 5. Record the deposit in transit at the end of the month. Part 4: After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $280, of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?

Required information
PA5-3 (Algo) Identifying Outstanding Checks and Deposits in Transit and Preparing a Bank
Reconciliation and Journal Entries [LO 5-4, LO 5-5]
[The following information applies to the questions displayed below.]
The December bank statement and cash T-account for Stewart Company follow:
BANK STATEMENT
Date
Checks
Deposits
Other
Balance
$ 45,600
38,000
$ 7,600
$ 27,000
December 1
December 6
December 11
December 17
December 23
December 26
December 30
530
12,900
64,470
51,570
35,000
86,570
530
86,040
17,800
18,000 NSF*
85,960
December 31
Interest earned
Service charge
86,020
December 31
85,890
*NSF check from J. Left, a customer.
Cash (A)
Debit
Credit
December 1
Balance
45,600
Checks written during
December:
Deposits
December 11
27,000
7,600
December 23
35,000
530
18,000
12,900
December 30
December 31
12,000
530
130
17,800
4,500
December 31
Balance
93,610
There were no deposits in transit or outstanding checks at November 30.
S
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$ 280
60
130
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