August 2014 bank statement and cash T-account for Martha Company follow:

No deposits were in transit and no cheques were outstanding at the end of July.
Required
1. Identify and list the deposits in transit at the end of August.
Put a check mark beside each item that appears on both the bank statement and what's already been recorded in the accounting records (shown in the T-account).
2. Identify and list the outstanding cheques at the end of August.
3. Prepare a bank reconciliation for August.
Any items in the accounting records without check marks should appear on the bank statement side of the bank reconciliation. Any items in the bank statement without check marks should appear on the company's books side of the bank reconciliation.
Up-to-date cash balance equals $20,290.
4. Give 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 balance will be reflected in the Cash account in the ledger?
6. If the company also has $100 on hand, which is recorded in a different account called Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the August 31, 2014, balance sheet?

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Withdrawals Balance Date Deposits Aug. 1 2-Cheque $17,470 $300 17,170 $12,000 3 29,170 28,770 4-Cheque 5-Cheque 9-Cheque 400 250 28,520 890 27,630 10-Cheque 310 27,320 15 4,000 31,320 21-Cheque 24-Cheque 400 30,920 21,000 9,920 25 7,000 16,920 30-Cheque 800 16,120 30-Interest earned 20 16,140 31-Service charge 10 16,130 Cash (A) 17,470 Cheques written Aug. 1 Deposits Balance Aug. 2 Aug. 1 12,000 4,000 300 12 400 24 7,000 250 3 31 5,000 310 4 890 290 15 550 17 800 18 400 19 21,000 23 Aug. 31 Balance 20,280