Bank Rec Problem Lowe Inc.'s bank statement from Western Bank at August 31, 2014. gives the following information A summary of the Cash account in the ledger for August shows the following balance. August 1, $21, 100. receipts $81,000; disbursements $73, 570; and balance. August 31, $28, 530 Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit m transit for $7,000 and outstanding checks of $4, 500 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 Instructions (Just to give you something to laugh at. the authors think you can do this problem in ten minutes. It took me three just to read it and cut and paste it) Determine deposits in transit Determine outstanding checks Prepare a bank reconciliation at August 31