Fundamentals of Financial Accounting 4th Edition by Fred Phillips,Robert Libby,Patricia Libby

Exercise 63

Identifying Outstanding Checks and Deposits in Transit and Preparing a Bank Reconciliation and Journal Entries
The September 2014 bank statement and cash T-account for Terrick Company follow:


There were no deposits in transit or outstanding checks at August 31.
Required:
1. Identify and list the deposits in transit at the end of September.
2. Identify and list the outstanding checks at the end of September.
3. Prepare a bank reconciliation for September.
4. Give any journal entries that the company should make as a result of the bank reconciliation. Why are they necessary
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 on hand, which is recorded in a different account called Cash on Hand, what total amount of Cash and Cash Equivalents should be reported on the September 30, 2014, balance sheet