The December 31, 2011, bank statement for Packer Company and

The December 31, 2011, bank statement for Packer Company and the December 2011 ledger accounts for cash follow.

The December 31, 2011, bank statement for Packer Company and

The November 2011 bank reconciliation showed the following: correct cash balance at November 30,
$64,100; deposits in transit on November 30, $17,000; and outstanding checks on November 30, $400 + $500 = $900.

Required:
1. Compute the deposits in transit December 31, 2011, by comparing the deposits on the bank statement to the deposits listed on the cash ledger account and the list of deposits in transit at the end of November.
2. Compute the outstanding checks at December 31, 2011, by comparing the checks listed on the bank statement with those on the cash ledger account and list of outstanding checks at the end of November.
3. Prepare a bank reconciliation at December 31, 2011.
4. Give any journal entries that should be made as a result of the bank reconciliation made by the company. Why are they necessary?
5. What total amount of cash should be reported on the December 31, 2011 balancesheet?



Transcribed Image Text:

BANK STATEMENT Date Checks Deposits Balance Dec. I $48.000 S400; 300 7,000: 90 120: 180: 1.600 500; 1.200: 70 480, 700; 1,900 12.000: 8,000 60; 23.500 900; 2,650 2.200; 5,200 17,000: 1,890: 300 1.650: 1,350: 150 $17,000 57.210 55,310 81.540 78.460 58.460 70,900 67.350 59,950 59.760 5.250 61.860 6 28,000 13 17 23 26 28 36,000 19.000 NSF check, J. Left, acustomer. Bank service charge Interest collected. Cash (A) Dec. 1 Balance Deposits Dec. 11 64,100 Checks written during December: 60 28,000 17,000 5,000 5,200 1,890 1,600 120 90 23,500 500 1,200 1,650 2,200 7,000 36,000 30 19,000 3,300 13,000 1,350 180 12,000 70 480 8,000 1,900