Required information Skip to question [The following information applies to the questions displayed below.] The August bank statement and cash T-account for Martha Company follow: BANK STATEMENT Date Checks Deposits Other Balance August 1 $ 13,600 August 2 $ 120 13,480 August 3 $ 9,300 22,780 August 4 220 22,560 August 5 160 22,400 August 9 530 21,870 August 10 130 21,740 August 15 3,100 24,840 August 21 220 24,620 August 24 15,500 9,120 August 25 5,650 14,770 August 30 620 14,150 August 30 Interest earned $ 20 14,170 August 31 Service charge 10 14,160 Cash (A) Debit Credit August 1 Balance 13,600 Deposits Checks written August 2 9,300 120 August 1 August 12 3,100 220 August 2 August 24 5,650 160 August 3 August 31 4,100 130 August 4 530 August 5 200 August 15 280 August 17 620 August 18 220 August 19 15,500 August 23 August 31 Balance 17,770 No deposits were in transit and no checks were outstanding at the end of July. 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.

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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[The following information applies to the questions displayed below.]

The August bank statement and cash T-account for Martha Company follow:

Date	Checks	Deposits	Other	Balance
BANK STATEMENT
August 1					$ 13,600
August 2	$ 120				13,480
August 3		$ 9,300			22,780
August 4	220				22,560
August 5	160				22,400
August 9	530				21,870
August 10	130				21,740
August 15		3,100			24,840
August 21	220				24,620
August 24	15,500				9,120
August 25		5,650			14,770
August 30	620				14,150
August 30			Interest earned	$ 20	14,170
August 31			Service charge	10	14,160

Cash (A)
Debit	Credit
August 1 Balance	13,600
Deposits		Checks written
August 2	9,300	120	August 1
August 12	3,100	220	August 2
August 24	5,650	160	August 3
August 31	4,100	130	August 4
		530	August 5
		200	August 15
		280	August 17
		620	August 18
		220	August 19
		15,500	August 23
August 31 Balance	17,770

No deposits were in transit and no checks were outstanding at the end of July.

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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