Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information PA5-3 (Algo) Identifying Outstanding Checks and Deposits in Transit and preparing a Bank Reconciliation and Journal Entries (LO 5-4, LO 5.5) [The following
Required information PA5-3 (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 December bank statement and cash T-account for Stewart Company follow: BANK STATEMENT Date Checks Deposits other December 1 December 6 $ 7,680 December 11 530 $ 27,000 December 17 12,900 December 23 35,000 December 26 530 December 30 17,800 18,000 NSF December 31 Interest earned December 31 Service charge NSF check from J. Left, a customer Balance $ 45,600 38,000 64,470 51,570 86,570 86,040 85,960 86,020 85,890 $ 280 69 130 Cash (A) Credit Debit Salance December 1 45,600 Debit Balance December 1 Deposits December 11 December 23 December 30 December 31 Cash (A) Credit 45,600 Checks written during December: 27,000 7,600 35,000 530 18,000 12,900 12,000 530 130 17,800 4,500 93,618 December 31 Balance There were no deposits in transit or outstanding checks at November 30. PA5-3 (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 $280 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 December 31 balance sheet? 5. Balance in Cath Account 6. Total Amount of Cash and Cash Equivalents
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started