The December 2013 bank statement and cash T-account for Stewart Company follow:

There were no deposits in transit or outstanding checks at November 30.

Required:                                
1. Identify and list the deposits in transit at the end of December.
2. Identify and list the outstanding checks 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, 2013, balance sheet?

Transcribed Image Text:

BANK STATEMENT Date Dec. 1 its Other 500 5 $28,000 7 NSF* Interest earned 50 19,000 8 1 3 NSF check from J. Left, a customer. Service chare 50 86,720 Cash (A) 48,000 Checks written during December: 28,000 19,000 Dec.1 Balance Deposits Dec. 11 23 30 31 500 36,000 7,000 120 3,000550 1,900 0 900 150 17,000 4,500 1,650 12,00 2,200 Dec. 31 Balance 95,470