CP5-3 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 August bank statement and cash T-account for Martha Company follow:

BANK STATEMENT
Date		Checks			Deposits			Other			Balance
Aug.	1										$	14,030
	2	$	140									13,890
	3				$	9,600						23,490
	4		240									23,250
	5		170									23,080
	9		570									22,510
	10		150									22,360
	15					3,200						25,560
	21		240									25,320
	24		16,100									9,220
	25					5,800						15,020
	30		640									14,380
	30							Interest earned	$20			14,400
	31							Service charge	10			14,390

Cash (A)

Aug. 1 Balance	14,030
Deposits			Checks written
Aug. 2	9,600		140	Aug. 1
12	3,200		240	2
24	5,800		170	3
31	4,200		150	4
			570	5
			210	15
			310	17
			640	18
			240	19
			16,100	23
Aug. 31 Balance	18,060

No deposits were in transit and no checks were outstanding at the end of July.

References

Section BreakCP5-3 Identifying Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries [LO 5-4, LO 5-5]

13.

value: 6.25 points

Required information

CP5-3 Part 1 and 2

Required:

1.	Identify and list the deposits in transit at the end of August. (Select all that apply.)
	TIP: Put a check mark beside each item that appears on both the bank statement and whats already been recorded in the accounting records (shown in the T-account).

2.	Identify and list the outstanding checks at the end of August. (Select all that apply.)

References

eBook & Resources

Select All that ApplyDifficulty: 2 MediumLearning Objective: 05-05 Explain the reporting of cash.

CP5-3 Part 1 and 2Learning Objective: 05-04 Perform the key control of reconciling cash to bank statements.

Check my work

14.

value: 6.25 points

Required information

CP5-3 Part 3

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 companys books side of the bank reconciliation.