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Question - Splish Brothers Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.
Balance, August 1
Bank debit memorandum:
Safety deposit box fee
Checks cleared in August
Bank credit memorandum:
Balance, August 31
A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,840; receipts $74,140; disbursements $73,545; and balance, August 31, $19,435. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,825 and outstanding checks of $4,525. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.
Determine deposits in transit.
Determine outstanding checks.
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