CP5-3 (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 applles to the questions displayed below.] The August bank statement and cash T-account for Martha Company follow: No deposits were in transit and no checks were outstanding at the end of July. 3. Prepare a bank reconciliation for August. TIP. Any item in the accounting records without check marks should appear on the bank statement side of the bank reconciliation. Any items in the bank statement without check marks should appear on the company's books side of the bank reconcillation