Required information [The following information applies to the questions displayed below.] The December bank statement and cash T-account for Stewart Company follow: BANK STATEMENT Date Checks Deposits Other Balance

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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### Required Information

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

The December bank statement and cash T-account for Stewart Company follow:

#### Bank Statement

| Date        | Checks | Deposits | Other | Balance  |
|-------------|--------|----------|-------|----------|
| December 1  |        |          |       | $36,000  |
| December 6  | $7,520 |          |       | $28,480  |
| December 11 |   $450 | $27,000  |       | $55,030  |
| December 17 | $8,900 |          |       | $46,130  |
| December 23 |        | $34,000  |       | $80,130  |
| December 26 |   $450 |          |       | $79,680  |
| December 30 | $12,200| $18,000  | NSF*  | $85,280  |
| December 31 |        |          | $200  | $85,280  |
| December 31 |        |          | Interest Earned $20 | $85,300 |
| December 31 |        |          | Service Charge $50 | $85,250 |

*NSF check from J. Left, a customer.

#### Cash (A)

| Debit      |             | Credit                        |
|------------|-------------|-------------------------------|
| December 1 | Balance $36,000 |                               |
| Deposits   |             | Checks written during December: |
| December 11| $27,000     | $7,520                         |
| December 23| $34,000     | $450                           |
| December 30| $18,000     | $8,900                         |
| December 31| $11,000     | $450                           |
|            |             | $50                            |
|            |             | $12,200                        |
|            |             | $5,700                         |
|            |             |                               |
| December 31| Balance $90,730 |                             |

There were no deposits in transit or outstanding checks at November 30.
Transcribed Image Text:### Required Information **[The following information applies to the questions displayed below.]** The December bank statement and cash T-account for Stewart Company follow: #### Bank Statement | Date | Checks | Deposits | Other | Balance | |-------------|--------|----------|-------|----------| | December 1 | | | | $36,000 | | December 6 | $7,520 | | | $28,480 | | December 11 | $450 | $27,000 | | $55,030 | | December 17 | $8,900 | | | $46,130 | | December 23 | | $34,000 | | $80,130 | | December 26 | $450 | | | $79,680 | | December 30 | $12,200| $18,000 | NSF* | $85,280 | | December 31 | | | $200 | $85,280 | | December 31 | | | Interest Earned $20 | $85,300 | | December 31 | | | Service Charge $50 | $85,250 | *NSF check from J. Left, a customer. #### Cash (A) | Debit | | Credit | |------------|-------------|-------------------------------| | December 1 | Balance $36,000 | | | Deposits | | Checks written during December: | | December 11| $27,000 | $7,520 | | December 23| $34,000 | $450 | | December 30| $18,000 | $8,900 | | December 31| $11,000 | $450 | | | | $50 | | | | $12,200 | | | | $5,700 | | | | | | December 31| Balance $90,730 | | There were no deposits in transit or outstanding checks at November 30.
**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 $200 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet?

| 5. Balance in Cash Account                       | [Input Field] |
|--------------------------------------------------|---------------|
| 6. Total Amount of Cash and Cash Equivalents     | [Input Field] | 

This section asks for the reflection of the Cash account balance post-reconciliation and how to calculate the total Cash and Cash Equivalents, including petty cash, for the December 31 balance sheet. The table provides fields for inputting these values.
Transcribed Image Text:**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 $200 of petty cash on hand, which is recorded in a different account called Petty Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the December 31 balance sheet? | 5. Balance in Cash Account | [Input Field] | |--------------------------------------------------|---------------| | 6. Total Amount of Cash and Cash Equivalents | [Input Field] | This section asks for the reflection of the Cash account balance post-reconciliation and how to calculate the total Cash and Cash Equivalents, including petty cash, for the December 31 balance sheet. The table provides fields for inputting these values.
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