Computing OutstandingChecksand Deposits inTransit and Preparing aBank Reconciliation and Journal Entries (P6-8)
The December 31,20 II , bank statement for Rivas Company and the December 2011 ledger accounts for cash follow.
BANK STATEMEN T | |||
Date | Checks | Deposits | Balance |
Dec.1 |
|
| $48,000 |
2 | 5400;300 | 5 17,000 | 64,300 |
4 | 7,000; 90 |
| 57,2 10 |
6 | 120; 180: 1,600 |
| 55.3 10 |
11 | 500 ; 1.200; 70 | 28,000 | 81.540 |
13 | 480; 700; 1,900 |
| 78.460 |
17 | 12,000; 8,000 |
| 58.460 |
23 | 60; 23,500 | 36 ,000 | 70.900 |
26 | 900 ; 2.650 |
| 67.350 |
28 | 2,200; 5,200 |
| 59.950 |
30 | 17,000; 1.890 ; 300* | 19,000 | 59.760 |
31 | 1,650: 1,350; 150t | 5.250* | 6 1.860 |
*NSF check. J. Left. a customer. | |||
*Bank service charge | |||
*interest collected. | |||
Cash (A) | |||||
Dec. 1 | Balance | 64,100 | Checks written during December: | ||
Deposits |
|
| 60 | 5,000 | 1,650 |
Dec. l |
| 28,000 | 17,000 | 5,200 | 1,650 |
23 |
| 36,00 | 700 | 1,890 | 2,200 |
30 |
| 19,000 | 3,500 | 1,600 | 7,000 |
31 |
| 13,000 | 1,350 | 120 | 300 |
|
|
| 180 | 90 | 480 |
|
|
| 12,000 | 23,500 | 8,000 |
|
|
| 70 | 500 | 1,900 |
|
|
| 900 | 1,200 |
|
The November 2011bank 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 + 5500 = $900.
Required:
l. 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 en d of November.
2. Compute the outstanding checks at December 3 1, 2011 , by com paring the check s listed on the bank statement with those on the cash ledger account and the 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, balance sheet?
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