Instructions

a) Determine deposits in transit.

Transcribed image text: Spade Inc.'s bank statement from Hollow Bank at July 31, 2019, gives the following information. $18,400 71,000 68,678 $ Balance, July 1 August deposits Checks cleared in July Bank credit memorandum: Interest earned 25 Bank debit memorandum: Safety deposit box fee Service charge Balance, July 31 50 20,692 45 A summary of the Cash account in the ledger for July shows the following: balance, July 1, $18,700, receipts $74,000; disbursements $73,570; and balance, July 31, $19,130. Analysis reveals that the only reconciling items on the June 30 bank reconciliation were a deposit in transit for $4,800 and outstanding checks of $4,500. In addition, you determine that there was an error involving a company check drawn in July: A check for $400 to a creditor on account that cleared the bank in July was journalized and posted for $40