P6-6 (Algo) Computing Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries LO6-4 3.

P6-6 (Algo) Computing Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries LO6-4

[The following information applies to the questions displayed below.]

The August, current year, bank statement for Allison Company and the August, current year, ledger account for cash follow:

BANK STATEMENT
Date		Checks and EFTs				Deposits				Balance
Aug. 1										$	18,360
2		$	390								17,970
3						$	12,150				30,120
4			505								29,615
5			340								29,275
9			795								28,480
10			215	EFT							28,265
15							4,150				32,415
21			315								32,100
24		$	19,500								12,600
25							7,150				19,750
30			750	EFT							19,000
30							3,300	*			22,300
31			115								22,185

*$3,300 interest collected.

Bank service charge.

Cash (A)
Aug. 1 Balance	17,125	Checks written and electronic funds transfers
Deposits		Aug. 2	EFT 215
Aug. 2	12,150	4	795
12	4,150	15	180
24	7,150	17	510
31	5,200	18	EFT 750
		20	315
		23	19,500

Outstanding checks at the end of July were for $340, $505, and $390. No deposits were in transit at the end of July.

Prepare a bank reconciliation for August.