Required Information 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 applies to the questions displayed below.] The August bank statement and cash T-account for Martha Company follow: Date August 1 August 2 Checks BANK STATEMENT Deposits Other Balance $ 16,610 $ 260 16,350 August 3 $ 11,400 27,750 August 4 360 27,390 August 5 230 27,160 August 9 810 26,350 August 10 270 26,080 August 15 3,800 29,880 August 21 360 29,520 August 24 19,700 9,820 August 25 6,700' 16,520 August 30 760 15,760 August 30 Interest earned $ 20 15,780 August 31 Service charge 10 15,770 Cash (A) Debit Credit August 1 Balance 16,610 Deposits Checks written August 2 11,400 260 August 1 August 12 3,800 360 August 2 August 24 6,700 230 August 3 August 31 4,800 270 August 4 810 August 5 270 August 15 490 August 17 760 August 18: 360 August 19 19,700 August 23 August 31 Balance 19,800 No deposits were in transit and no checks were outstanding at the end of July. CP5-3 (Algo) Part 1 and 2 Required: 1. Identify the deposits in transit at the end of August. TIP: To eliminate deposits NOT in transit, put a check mark beside each item that appears in both the bank statement and the T- account. After doing this, deposits in transit will not have a tick mark. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 11,400 3,800 6,700 4,800 2. Identify the outstanding checks at the end of August. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 260 360 2. Identify the outstanding checks at the end of August. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.) 260 114 360 230 270 7810 270 490 760 19,700 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 reconciliation. Bank Statement Ending Balance per Bank Statement Additions: Deductions: MARTHA COMPANY Bank Reconciliation At August 31 Company's Books Ending Balance per Cash Account Additions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance CP5-3 (Algo) Part 4 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.) View transaction list Journal entry worksheet A B C D Record the interest of $20 received from the bank. Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal August 31 Balance 19,700 August 23 19,800 No deposits were in transit and no checks were outstanding at the end of July. CP5-3 (Algo) Part 5 and 6 5. After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? 6. If the company also has $90 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the August 31 balance sheet? 5. Balance in Cash Accounts 6. Total Amount of Cash and Cash Equivalents