Ample Company carries its chequing account with Commerce Bank. he company is ready to prepare its 31 December bank reconcilia-tion. The following information is available:

a. The 30 November bank reconciliation showed the following:

i. Cash on hand ( held back each day by Ample Company for change), $ 400 ( included in Ample’s Cash account).

ii. Deposit in transit, # 51, $ 2,000.

iii. Cheques outstanding, # 121, $ 1,000; # 130, $ 2,000; and # 142, $ 3,000.

b. Ample Company cash account for December:

Balance, 1 December ……………………………………………      $ 64,000

Deposits: # 52—# 55, $ 186,500; # 56, $ 3,500………………….      190,000

Cheques: # 143—# 176, $ 191,000; # 177, $ 2,500; # …………..     178,

$ 3,000; and # 179, $ 1,500……………………………………….    (198,000)

Balance, 31 December ( includes $ 400 cash held for change)……   $56,000

c. Bank statement, 31 December:

Balance, 1 December ……………………………………………… $ 67,600

Deposits: # 51—# 55 …………………………………………….    188,500

Cheques: # 130, $ 2,000; # 142, $ 3,000; # 143—# 176, $ 191,000… (196,000)

Account receivable collected for Ample Co. ……………………… 6,720

Cash received from foreign customer: prepayment on order;

not yet recorded by Ample Co. ………………………………..       10,000

NSF cheque, Customer Belinda (200) United Fund ( automatic charitable donation per transfer authorization signed by Ample Co.) ( 50) Bank service charges ( 20) Balance, 31 December $ 76,550

Required: 

1. Identify by number and dollars the 31 December deposits in transit and cheques outstanding.

2. Prepare the 31 December bank reconciliation.

3. Prepare all journal entries.