The August bank statement and cash T-account for Martha Company follow: 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 No deposits were in transit and no checks were outstanding at the end of July. CP5-3 (Algo) Part 4 Prepare any journal entries that the company should make as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The August bank statement and cash T-account for Martha Company follow:

 

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    

 

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

 

CP5-3 (Algo) Part 4

  1. Prepare any journal entries that the company should make as a result of the bank reconciliation. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)  
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