Question

The December bank statement and cash T-account for Stewart Company follow: Withdrawals Deposits $ 550 7,500 125 Balance $50,500 49,950 42,450 42,325 72,225 70,075 57,575 600 $30,500 2,150 12,500 Date Dec. 1 2-Cheque 4-Cheque 6-Cheque 11-Cheque 13-Cheque 17-Cheque 23-Cheque 26-Cheque 28-Cheque 30-Cheque 30–NSF* 31-Cheque 31-Interest earned 31-Service charge 36,500 . 925 93,085 2,450 17,500 350 1,700 90,6 92,6 о л л op www л л 19,500 92,285 90,585 90,640 90,465 175 *NSF cheque from J. Left, a customer. + Cash (A) - Balance 50,500 Cheques written during December: Dec. 1 Deposits Dec. 11 23 30,500 36,500 19,500 13,500 550 7,500 125 600 2,150 12,500 2,450 65 925 175 17,500 3,750 1,700 Dec. 31 Balance 100,510 There were no deposits in transit or outstanding cheques at November 30.

Answer 1

1. Deposits in transit: $13500

2. Outstanding cheques:

$    3,750

$        175

3.

STEWART COMPANY
Bank Reconciliation
At December 31
Bank Statement		Company's Books
Ending balance per bank statement	90465	Ending balance per Cash account	100510
Additions:		Additions:
Deposits in transit	13500	Interest earned	55
	103965		100565
Deductions:		Deductions:
Outstanding cheques	3925	NSF cheque	350
		Service charge	175
Up-to-date cash balance	100040	Up-to-date cash balance	100040

4.

Date	General Journal	Debit	Credit
Dec-31	Cash	55
	Interest revenue		55
	(To record the interest earned)
Dec-31	Miscellaneous expense	175
	Cash		175
	(To record the service charges incurred)
Dec-31	Accounts receivable-J. Left	350
	Cash		350
	(To record the NSF cheque)

5. Cash balance: $100040

6. Cash and cash equivalents = $100040 + $350 = $100390