The August 2014 bank statement for Martha Company and the August 2014 ledger accounts for cash follow:

Outstanding cheques at the end of July were for $ 250, $ 400, and $ 300. No deposits were in transit at the end of July.
Required:
1. Compute the amount of deposits in transit at August 31, 2014.
2. Compute the amount of outstanding cheques at August 31, 2014.
3. Prepare a bank reconciliation at August 31, 2014.
4. Prepare any journal entries that the company should make as a result of the bank reconciliation. Why are they necessary?
5. After the reconciliation journal entries are posted, what balances would be reflected in the cash accounts in the ledger?
6. What total amount of cash should be reported on the August 31, 2014, statement of financial position?

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DDProviacial Bank 594 Water Street STATEMENTCF ACCOUNT PB Faubourg. ON BRANCHİACOUNTİ ACCOUNT PAGE DATE |NUMBERI TYPE İMMEER NO. 12G 486 Martha Company 2784,7th Avenue Faubourg, ON L3G 385 Date Descripiorn Dobits Credits Balance Au. 1 Balance Forward Chéque No. 103 17.470 Deposit 29,170 28,770 23520 4 Cheque o. 101 5 Cheque No. 105 9 Cheque o. 102 10Cheque No 104 15Deposit 4,000 2Cheque No. 108 24Cheque No. 108 30920 9920 16,920 16,120 21,000 Cbeque No. 10 Colection otnote Serice charge interest earned 18290 18.070 The amount ooEected on August 30 includes interest of $180 Cash in Bank Balance 16,520 Cheques writen Aug. 1 Deposits Aug 2 Aug. 2 12,000 4,000 7,000 5,000 290 800 21.000 12 15 31 18 Cash on Hand 31 Balance 200