Question

Required information [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 Checks Date Dec. 1 $ 7,720 650 18,900 $28,000 37,000 Balance $ 60,000 52, 280 79,630 60,730 97,730 97,080 89,480 89,580 89,330 650 26,200 19,000 NSF* Interest earned Service charge $400 100 31 31 250 *NSF check from J. Left, a customer. Dec. 1 Balance Deposits Dec. 11 Cash (A) 60,000 Checks written during December: 28,000 7,720 37,000 650 19,000 18,900 14,000 650 250

Answer 1

			Bank Reconciliation
			At December 31
Bank Statement					Company's books
Ending balance per Bank Statement				89,330	ending balance as per Cash account				97,630
Addittions:					Addittions
Deposit in transit			14,000		interest earned			100
				14,000					100
				103,330					97,730
Deductions:					Deductions:
Checks outstanding		(250+6000)	6,250		NSF			400
					service charge			250
				6,250					650
Up-to-date Cash balance				97,080					97,080
No	Tr	General Journal				Debit	Credit
A	1)	cash				100
		interest revenue					100
B)	2)	Service expense				250
		cash					250
C)	3)	Accounts receivable				400
		cash					400
D)	4)	No entry
E)	5)	No Entry
Balance in cash account				97,080
total amount of cash & cash equivalents				97,480