CP5-3 Identifying Outstanding Checks and Deposits in Transit and Preparing
a Bank Reconciliation and Journal Entries
The August bank statement and cash T-account for Martha Company
follow
Date
Aug.
Checks
Deposits
Balance
1
$
517,470
2
5,300
17,370
3
$12,000
20,170
4
400
250
28,530
5
300
27,630
6
27,330
7
4,000
31,330
8
400
30,930
9
9,900
7,000
16,140
10
Service charge 10
Cash (A)
7,400
4,000
5,000
400
2,100
No deposits were in transit and no checks were outstanding at the end of
July