The cash records of Jasmin Company show the following four situations.
1. The June 30 bank reconciliation indicated that deposits in transit total $2110. During July the general ledger account Cash shows deposits of $23620 but the bank statement indicates that only $23400 in deposits were received during the month.
2. The June 30 bank reconciliation also reported outstanding checks of $1250. During the month of July Jasmin Company books show that $25800 of checks were issued. The bank statement showed that $24600 of checks cleared the bank in July.
3. In September deposits per the bank statement totaled $40100 deposits per books were $38100 and deposits in transit at September 30 were $2900.
4. In September cash disbursements per books were $36550 checks clearing the bank were $37500 and outstanding checks at September 30 were $3200.
There were no bank debit or credit memoranda. No errors were made by either the bank or Jasmin Company.
Instructions
Answer the following questions.
(a) In situation (1) what were the deposits in transit at July 31?
(b) In situation (2) what were the outstanding checks at July 31?
(c) In situation (3) what were the deposits in transit at August 31?
(d) In situation (4) what were the outstanding checks at August 31?

Question

Sahar Abdelwhd · Accepted Answer

Final Answer :  (c) Deposits in transit:  Deposits per bank statement in September  $ 40 , 100  Add: Deposits in transit, September  30 2 , 900  Total deposits to be accounted for  43 , 000  Less: Deposits per books.  38 , 100  Deposits in transit, August  31 $ 4 , 900 \begin{array}{ll} 	ext { Deposits per bank statement in September }  &  \$ 40,100 \	ext { Add: Deposits in transit, September } 30  &  2,900 \ 	ext { Total deposits to be accounted for }  &  43,000 \ 	ext { Less: Deposits per books. }  &  38,100 \	ext { Deposits in transit, August } 31  &  \$ 4,900 \\end{array}  Deposits per bank statement in September   Add: Deposits in transit, September  30  Total deposits to be accounted for   Less: Deposits per books.   Deposits in transit, August  31 ​ $40 , 100 2 , 900 43 , 000 38 , 100 $4 , 900 ​ (d) Outstanding checks:  Checks clearing bank in September  $ 37 , 500  Add: Outstanding checks, September 30  3 , 200 Total checks to be accounted for  40 , 700  Less: Cash disbursements per books  36 , 550 Outstanding checks, August 31  $ 4 , 150 \begin{array}{lrr}  	ext { Checks clearing bank in September }  & \$37,500\ 	ext { Add: Outstanding checks, September 30   }  & 3,200\ 	ext {Total checks to be accounted for  }  & 40,700\ 	ext {  Less: Cash disbursements per books  }  & 36,550\ 	ext {Outstanding checks, August 31  }  & \$4,150\\end{array}  Checks clearing bank in September   Add: Outstanding checks, September 30  Total checks to be accounted for   Less: Cash disbursements per books  Outstanding checks, August 31  ​ $37 , 500 3 , 200 40 , 700 36 , 550 $4 , 150 ​

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