The December 3 1 , 2004, bank statement for Packer Company and the December 2004 ledger accounts for cash follow.

The November 2004 bank reconciliation showed the following: correct cash balance at November 30, $64,100; deposits in transit on November 30, $17,000; and outstanding checks on November 30, $400 + $500 = $900.
Required: 1. Compute the deposits in transit December 3 1 , 2004. 2. Compute the outstanding checks at December 31, 2004. 3. Prepare a bank reconciliation at December 3 1 , 2004. 4. Give any journal entries that should be made as a result of the bank reconciliation made by the company. Why are they necessary? 5. After the reconciliation journal entries, what balances would be reflected in the cash accounts in the ledger? 6. What total amount of cash should be reported on the December 3 1 , 2004, balance sheet?

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BANK STATEMENT -24613168 Date Checks Dec. 1 Deposits Balance $48,000 $400; 300 $17,000 64,300 7,000: 90 57.210 120; 180; 1,600 55,310 500; 1,200; 70 28,000 81.540 480; 700; 1.900 78.460 17 12,000; 8,000 58.460 60; 23,500 36.000 70,900 900; 2,650 67.350 2.200: 5.200 59.950 30 31 17.000; 1,890: 300* 19.000 59.760 1,650; 1,350; 150+ 5.250% 61.860 *NSF check, J. Left, a customer. +Bank service charge. #Interest collected. Cash (A) Dec. 1 Balance 64,100 Checks written during December: Deposits 60 5,000 2,650 Dec.11 28,000 17,000 5,200 1,650 233 23 36,000 700 1,890 2,200 30 19,000 3,300 1,600 7,000 31 13,000 1,350 120 300 180 90 480 12,000 23,500 8,000 70 500 1,900 900 1,200