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

BANK STATEMENT
Date			Checks			Deposits			Other			Balance
Aug.	1											$	14,890
	2		$	180									14,710
	3					$	10,200						24,910
	4			280									24,630
	5			190									24,440
	9			650									23,790
	10			190									23,600
	15						3,400						27,000
	21			280									26,720
	24			17,300									9,420
	25						6,100						15,520
	30			680									14,840
	30								Interest earned	$20			14,860
	31								Service charge	10			14,850

Cash (A)
Aug. 1	Balance	14,890
Deposits			Checks written
Aug. 2		10,200		180			Aug. 1
12		3,400		280			2
24		6,100		190			3
31		4,400		190			4
				650			5
				230			15
				370			17
				680			18
				280			19
				17,300			23
Aug. 31	Balance	18,640

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

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 $70 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?
7. 

1. Identify and list the deposits in transit at the end of August. TIP: Put a check mark beside each item that appears on both the bank statement and what's already been recorded in the accounting records (shown in the T-account). (Select all that apply.) $ 10,200 $ 3,400 $ 6,100 4,400 2. Identify and list the outstanding checks at the end of August. (Select all that apply.) $ 180 $ 28 190 190 S 650 $230 $ 370 $ 680 280 $ 17,300 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. MARTHA COMPANY ank Reconciliation At August 31 Bank Statement Company's Books Ending Balance per Bank Statement Additions Ending Balance per Cash Account Additions Deductions: Deductions: Up-to-Date Cash Balance Up-to-Date Cash Balance 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 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 Journal entry worksheet Earlier this month, a check in the amount of $17,300 was recorded as a reduction in cash. As of August 31, that check was still outstanding Note: Enter debits before credits Transaction General Journal Debit Credit Record entry Clear entry View general journal