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The August bank statement and cash T- account for Martha Company follow:
No deposits were in transit and no checks were outstanding at the end of July.
Required:
1. Identify and list the deposits in transit at the end of August.
2. Identify and list the outstanding checks at the end of August.
3. Prepare bank reconciliation for August.
4. Give any journal entries that the company should make as a result of the bank reconciliation.
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 $ 100 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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