The December 2014 bank statement and cash T-account for Stewart Company follow:

There were no deposits in transit or outstanding cheques at November 30.
Required
1. Identify and list the deposits in transit at the end of December.
2. Identify and list the outstanding cheques at the end of December.
3. Prepare a bank reconciliation for December.
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 $300 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 December 31, 2014, balance sheet?

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Withdrawals Balance Date Deposits Dec. 1 2-Cheque 4-Cheque 6-Cheque 11-Cheque 13-Cheque 17-Cheque 23-Cheque 26-Cheque 28-Cheque 30-Cheque $48,000 $ 500 7,000 47,500 40,500 120 40,380 67,830 65,930 53,930 89,870 88,970 550 1,900 12,000 60 $28,000 36,000 900 2,200 17,000 86,770 19,000 88,770 88,470 30-NSF 300 31-Cheque 31-Interest earned 31-Service charge 1,650 86,820 50 86,870 86,720 150 *NSF cheque from J. Left, a customer. Cash (A) Cheques written during December: Dec. 1 Balance 48,000 Deposits 500 Dec. 11 28,000 60 7,000 23 36,000 900 30 19,000 120 150 31 13,000 550 17,000 1,900 3,500 12,000 1,650 2,200 Dec. 31 Balance 96,470