BANK STATEMENT
Date	Checks and EFTs		Deposits		Balance
Aug. 1					17,510
2	320				17,190
3			11,700		28,890
4	430				28,460
5	270				28,190
9	880				27,310
10	250	ETF			27,060
15			4,000		31,060
21	350				30,710
24	20,400				10,310
25			6,500		16,810
30	850	ETF			15,960
30			2,350	*	18,310
31	120				18,190
*$2,350 interest collected.
service charge.
	Cash (A)
Aug. 1 Balance	16,490		Checks & ETF
Deposits		250	ETF	Aug. 2
Aug. 2	11,700	880	CK	4
12	4,000	280	CK	15
24	6,500	510	CK	17
31	5,200	850	ETF	18
		350	CK	20
		20,400	CK	23
Outstanding checks at the end of July were for $270, $430, and $320. No deposits were in transit at the end of July.
Required:
1. Compute the deposits in transit at the end of August by comparing the deposits on the bank statement to the deposits listed on the cash ledger account.
2. Compute the outstanding checks at the end of August 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 July.
3. Prepare a bank reconciliation for August (Reconcile Book balance to Correct balance and Bank balance to Correct balance).
4. Give any journal entries that the company should make as a result of the bank reconciliation. Why are they necessary?
5. What total amount of cash should be reported on the August 31, 2014, balance sheet?