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 $ 200 85,280 85,300 85,250 12,200 18,000 NSF* December 31 Interest earned 20 December 31 Service charge 50 NSF check from J. Left, a customer. Cash (A) Debit Credit December 1 Balance 36,000 Checks written during Deposits 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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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## Required Information

**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  |        |          | Interest earned | 85,300   |
| December 31  |        |          | Service charge | 85,250   |

*NSF check from J. Left, a customer.

### Cash (A)

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

**Note:** There were no deposits in transit or outstanding checks at November 30.
Transcribed Image Text:## Required Information **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 | | | Interest earned | 85,300 | | December 31 | | | Service charge | 85,250 | *NSF check from J. Left, a customer. ### Cash (A) | | Debit | Credit | |-----------|-------|-----------------------------------------| | December 1 | Balance 36,000 | | Deposits | | | December 11 | 27,000 | Checks written during December: | | December 23 | 34,000 | | | December 30 | 18,000 | 7,520 | | December 31 | 11,000 | 450 | | | | 8,900 | | | | 450 | | | | 50 | | | | 12,200 | | | | 5,700 | | | 90,730 | | | December 31 | Balance | **Note:** There were no deposits in transit or outstanding checks at November 30.
The image displays a section from a financial education platform, focusing on preparing journal entries for bank reconciliation. It provides step 4 of the process alongside a journal entry worksheet.

### Instructions:
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.)

### Journal Entry Worksheet:
- **Current Task:** Record the interest of $20 received from the bank.
- **Note:** Enter debits before credits.

### Worksheet Structure:
- **Tabs:** Labeled A to E, indicating different transaction entries.
- **Entry Fields:** 
  - **Transaction Number:** An input box labeled "1" that allows for multiple entries.
  - **General Journal:** A column for recording the name of the accounts involved.
  - **Debit and Credit Columns:** Clearly marked for entering the respective amounts.

### Action Buttons:
- **Record entry:** Saves the current journal entry.
- **Clear entry:** Erases all data from the current entry fields.
- **View general journal:** Opens the general ledger to review all recorded entries.

This worksheet is a crucial tool for teaching accurate recording of financial transactions in company bookkeeping.
Transcribed Image Text:The image displays a section from a financial education platform, focusing on preparing journal entries for bank reconciliation. It provides step 4 of the process alongside a journal entry worksheet. ### Instructions: 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.) ### Journal Entry Worksheet: - **Current Task:** Record the interest of $20 received from the bank. - **Note:** Enter debits before credits. ### Worksheet Structure: - **Tabs:** Labeled A to E, indicating different transaction entries. - **Entry Fields:** - **Transaction Number:** An input box labeled "1" that allows for multiple entries. - **General Journal:** A column for recording the name of the accounts involved. - **Debit and Credit Columns:** Clearly marked for entering the respective amounts. ### Action Buttons: - **Record entry:** Saves the current journal entry. - **Clear entry:** Erases all data from the current entry fields. - **View general journal:** Opens the general ledger to review all recorded entries. This worksheet is a crucial tool for teaching accurate recording of financial transactions in company bookkeeping.
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