PA$5-3($Algo$)$ Identifying Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries $[$LO $5-4,$ LO $5-5]$

Skip to question

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

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

BANK STATEMENT

Date Checks Deposits Other Balance

December $1$ $ $60,000$

December $6$ $ $7,72052,280$

December $11650$ $ $28,00079,630$

December $1718,90060,730$

December $2337,00097,730$

December $2665097,080$

December $3026,20019,000$ NSF$*$ $ $40089,480$

December $31$ Interest earned $10089,580$

December $31$ Service charge $25089,330$

$*$ NSF check from J$.$ Left, a customer.

Cash $($A$)$

Debit Credit

December $1$ Balance $60,000$

Deposits Checks written during December:

December $1128,0007,720$

December $2337,000650$

December $3019,00018,900$

December $3114,000650$

$250$

$26,200$

$6,000$

December $31$ Balance $97,630$

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

PA$5-3($Algo$)$ Part $4$

Prepare any journal entries that the company should make as a result of the bank reconciliation. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal Entry Required" in the first account field.$)$