Question
How are the deposits in transit determined? I have listed a problem below Exercise 7-11 (Part Level Submission) Skysong, Inc.'s bank statement from Main Street
How are the deposits in transit determined? I have listed a problem below
Exercise 7-11 (Part Level Submission)Skysong, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.
Balance, August 1
$18,700
Bank debit memorandum:
August deposits
71,300
Safety deposit box fee
$125Checks cleared in August
68,578
Service charge
150Bank credit memorandum:
Balance, August 31
21,292Interest earned
145
A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,000; receipts $74,300; disbursements $73,470; and balance, August 31, $19,830. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,900and outstanding checks of $4,600. In addition, you determine that there was an error involving a company check drawn in August: A check for $400to a creditor on account that cleared the bank in August was journalized and posted for $40.
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