Question
11. (TCO F) Northville Paper and Paint deposits all receipts and makes all payments by check. The following information is available from the cash records.
11.(TCO F) Northville Paper and Paint deposits all receipts and makes all payments by check. The following information is available from the cash records.
April 30
BANK RECONCILIATION
Balance per bank | $26,746 | |
Add: Deposits in transit | 2,100 | |
Deduct: Outstanding checks | (3,800) | |
Balance per books | $25,046 | |
Month of May Results | Per Bank | Per Books |
Balance May 31 | $27,995 | $24,355 |
May deposits | 10,000 | 12,889 |
May checks | 11,100 | 16,080 |
May note collected | 3,000 | -0- |
(not included in April deposits) | ||
May bank service charge | 35 | -0- |
May NSF check of a customer | 900 | -0- |
returned by the bank | ||
(recorded by bank as a charge) |
Calculate the following amounts.
(1) Deposits in transit on May 31
(2) Outstanding checks on May 31 (Points : 25)
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