Question

The December bank statement and cash T-account for Stewart Company follos

The following information applies to the questions displayed below.) The December bank statement and cash T-account for Stewart Company follow BANK STATEMENT Deposits Other Date Checks Dec. 1 2 $ 420 4 5,760 80 11 470 13 1540 178,000 $27.000 Balance $38,400 37.980 32,220 32.140 58,670 57130 49.130 83.110 82.290 80,890 87.270 86,290 86.220 23 20 34.000 26 28 30 31 31 820 1.400 11.400 1.010 18.000 NSF Interest earned Service charge $220 30 70 *NSF check from J. Left a customer Cash A Dec. 1 Balance Deposits Dec. 11 38,400 27.000 8 34,000 18.000 11,000 Checks written during December 420 5,760 80 820 470 1,540 8,000 11,400 5.400 1.010 1.400 Dec. 31 Balance 92.010 There were no deposits in transit or outstanding checks at November 30.

Answer 1

3. Bank Reconciliation as presented in below table:

5. Balance in cash account ledger - $ 91,750 as per above reconciliation statement.

Bank Reconciliation Company's books Bank Statement Ending Balance as per bank statement Ending balance as per Cash account 86,220 92,010 Additions: Additions: Check accounted in books not yet deposited in bank Interest Earned 11,000 30 11,000 30 Deductions Deductions: check issued but not presented for payment NSF payment check deposited in bank left to account in books 5,400 220 check issued but not presented for payment Service Charge 70 70 5,470 290 91,750 Upto date Cash balance Upto date Cash balance 91,750

6. If company has petty cash on hand of $ 220, thus, balance in total cash and cash equivalents = 91750+220 = $ 91970