The August, current year, bank statement for Allison Company and the August, current year, ledger account for cash follow: BANK STATEMENT Checks and EFTs Deposits Date Aug. 1 2 3 4 $ 330 $12,050 5 9 525 315 825 250 EFT Balance $ 17,560 17,230 29,280 28,755 28,440 27,615 27,365 32,315 32,045 12,545 19,495 18,745 21,195 21,090 4,950 270 10 15 21 24 25 30 30 31 $19,500 6,950 750 EFT 2,450 - 105 + *$2,450 interest collected. tBank service charge. Aug. 1 Balance 16,390 Cash (A) Checks written and electronic funds transfers Aug. 2 4 Deposits Aug. 2 12 24 31 12,050 4,950 6,950 5,750 15 17 18 20 23 EFT 250 825 180 510 EFT 750 270 19,500 Outstanding checks at the end of July were for $315, $525, and $330. No deposits were in transit at the end of July. Required: 1. Compute the deposits in transit at the end of August by comparing the deposits on the bank statement to the deposits listed on the cash ledger account. Deposits in transit 2. Compute the outstanding checks at the end of August by comparing the checks listed on the bank statement with those on the cash ledger account and the list of outstanding checks at the end of July. Outstanding checks 3. Prepare a bank reconciliation for August. ALLISON COMPANY Bank Reconciliation, August 31, Current Year Company's Books Bank Statement Ending balance per cash account Ending balance per bank statement Additions: Additions: 0 Deductions: Deductions: Correct cash balance Correct cash balance 4. Prepare joumal 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 2 3 4 > Record the entry for deposits during August. Note: Enter debits before credits. Transactior General Journal Debit Credit A Record entry Clear entry View general journal 4. Prepare 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 entry for checks cleared during August. Note: Enter debits before credits Transaction General Journal Debit Credit B Record entry Clear entry View general journal 4. Prepare 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 entry for interest collected. Note: Enter debits before credits. General Journal Deblt Credit Transaction Record entry Clear entry View general Journal 4. Prepare 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 entry for service charges deducted from bank balance. Note: Enter debits before credits. Transaction General Journal Debit Credit D Record entry Clear entry View general journal 5. What total amount of cash should be reported on the August 31, Current Year, balance sheet? Total amount of cash
