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 5 and 6 After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger? If the company also has $50 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 August 31 balance sheet?

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter4: The Adjustment Process

Section: Chapter Questions

Problem 2PB: To demonstrate the difference between cash account activity and accrual basis profits (net income),...

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

Date	Checks	Deposits	Other	Balance
BANK STATEMENT
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 5 and 6

After the reconciliation journal entries are posted, what balance will be reflected in the Cash account in the ledger?
If the company also has $50 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 August 31 balance sheet?

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