The August 2011 bank statement for Hirst Company and the August 2011 ledger account for cash follow:

Outstanding checks at the end of July were for $270, $430, and $320. 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.
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 list of outstanding checks at the end of July.
3. Prepare a bank reconciliation for August.
4. Give any journal entries that the company should make as a result of the bank reconciliation. Why are they necessary?
5. What total amount of cash should be reported on the August 31, 2011 balancesheet?

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BANK STATEMENT Date Checks Deposits Balance Aug. I $17,510 17,190 28,890 28,460 28.190 27,310 27,060 31,060 30,710 0.310 16.810 15,960 18,110 17,990 $11,700 270 10 4.000 350 20.400 6.500 2.150 31 *$2,150 interest c Bank service charge. 120+ Aug. 1 Balance Deposits Aug. 2 Cash (A) 16,490 Checks written 11,700 Aug. 2 15 18 250 4,000 280 510 850 350 20,400 20