The August bank statement and cash T-account for Martha Company follow: BANK STATEMENTDateChecksDepositsOtherBalanceAugust 1 $ 13,170August 2$ 100 13,070August 3 $ 9,000 22,070August 4200 21,870August 5150 21,720August 9490 21,230August 10110 21,120August 15 3,000 24,120August 21200 23,920August 2414,900 9,020August 25 5,500 14,520August 30600 13,920August 30 Interest earned$ 2013,940August 31 Service charge1013,930 Cash (A)DebitCreditAugust 1 Balance13,170 Deposits Checks written August 29,000100August 1August 123,000200August 2August 245,500150August 3August 314,000110August 4 490August 5 190August 15 250August 17 600August 18 200August 19 14,900August 23August 31 Balance17,480 No deposits were in transit and no checks were outstanding at the end of July. CP5-3 (Algo) Part 33. Prepare a bank reconciliation for August.TIP: Any item in the accounting records without check marks should appear on the bank statement side of the bank reconciliation. Any items in the bank statement without check marks should appear on the company’s books side of the bank reconciliation.

A bank reconciliation is sought by the management as there reflects a difference between the…

Answered: Prepare a bank reconciliation for…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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BANK STATEMENT
Date	Checks	Deposits	Other	Balance
August 1					$ 13,170
August 2	$ 100				13,070
August 3		$ 9,000			22,070
August 4	200				21,870
August 5	150				21,720
August 9	490				21,230
August 10	110				21,120
August 15		3,000			24,120
August 21	200				23,920
August 24	14,900				9,020
August 25		5,500			14,520
August 30	600				13,920
August 30			Interest earned	$ 20	13,940
August 31			Service charge	10	13,930

Cash (A)
Debit	Credit
August 1 Balance	13,170
Deposits		Checks written
August 2	9,000	100	August 1
August 12	3,000	200	August 2
August 24	5,500	150	August 3
August 31	4,000	110	August 4
		490	August 5
		190	August 15
		250	August 17
		600	August 18
		200	August 19
		14,900	August 23
August 31 Balance	17,480

CP5-3 (Algo) Part 3

3. Prepare a bank reconciliation for August.
TIP: Any item in the accounting records without check marks should appear on the bank statement side of the bank reconciliation. Any items in the bank statement without check marks should appear on the company’s books side of the bank reconciliation.

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