1. Identify and list the deposits in transit at the end of August.
2. Identify and list the outstanding checks at the end of August.
3. Prepare a bank reconciliation for August.
4. Give any journal entries that the company should make as a result of the bank reconciliation.
Why are they necessary?
5. After the reconciliation journal entries are posted, what balance will be reflected in the Cash
account in the ledger?
6. If the company also has $100 on hand, which is recorded in a different account called Cash
on Hand, what total amount of cash should be reported on the August 31, 2006, balance
1. There is a deposit in transit of $5,000 at the end of August. It is recorded in the books, but not in the bank.
2. There are two outstanding checks in the ...
The solution clearly demonstrates and explains how a bank reconciliation is prepared in a dual format.