The December bank statement and cash T-account for Stewart Company follow:

There were no deposits in transit or outstanding checks at November 30.

Required:

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.
3. Prepare a bank reconciliation for December.
4. Give any journal entries that the company should make as a result of the bank reconciliation.
5. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?
6. If the company also has $300 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?

Transcribed Image Text:

BANK STATEMENT Date Checks Deposits Other Balance $48,000 40,380 67,830 53,930 89,930 Dec. 1 $ 7,620 550 6 11 $28,000 17 13,900 23 36,000 26 960 88,970 88,470 88,520 88,370 30 19,200 19,000 NSF* $300 31 Interest earned 50 31 Service charge 150 *NSF check from J. Left, a customer.