**I am having trouble figuring out how to determine the outstanding checks, bank errors, basically everything relating the Reconciliation Procedure however I did determine that the deposit in transit is $7820.**

Metlock, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.

Balance, August 1 $18,740 Bank debit memorandum:

August deposit $71340 Safety deposit box fee $45

Checks cleared in August $68658 Service charge $70

Bank credit memorandum: Balance, August 31 $21372

Intrest earned $65

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,040; receipts $74,340; disbursements $73,550; 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 $4,820and outstanding checks of $4,520. 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.