Computing Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries
The December 31, 2011, bank statement for Rivas Company and the December 2011 ledger accounts for cash follow.

The November 2011 bank reconciliation showed the following: correct cash balance at November 30, $64,100; deposits in transit on November 30, $17,000; and outstanding checks on November 30, $400 + $500 = $900.
Required:
1. Compute the deposits in transit December 31, 2011, by comparing the deposits on the bank statement to the deposits listed on the cash ledger account and the list of deposits in transit at the end of November.
2. Compute the outstanding checks at December 31, 2011, by comparing the checks listed on the bank statement with those on the cash ledger account and the list of outstanding checks at the end of November.
3. Prepare a bank reconciliation at December 31, 2011.
4. Give any journal entries that should be made as a result of the bank reconciliation made by the company. Why are they necessary?
5. What total amount of cash should be reported on the December 31, 2011, balancesheet?

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BANK STATEMENT Checks Date Deposits Balance Dec. 1 $48,000 S400; 300 $17,000 64,300 7,000; 90 57,210 120: 180; 1,600 55,310 11 500; 1,200; 70 28.000 81,540 78,460 13 480: 700: 1,900 17 12,000; 8,000 58,460 23 60; 23,500 36,000 70,900 26 900; 2,650 67,350 28 2,200; 5,200 17,000; 1,890; 300* 1,650; 1,350; 150 59,950 19.000 30 59,760 5,250 31 61,860 *NSF check, J. Left, a customer. tBank service charge. Interest collected. Cash (A) Balance Dec. 1 64,100 Checks written during December: 5,000 5,200 1,890 1,600 120 90 Deposits Dec. 11 23 30 31 60 2,650 1,650 2,200 7,000 300 480 28,000 17,000 700 3,500 1,350 180 36,000 19,000 13,000 12,000 70 900 23,500 500 8,000 1,900 1,200