Kipling Company deposits all receipts and makes all payments by check. The following information is available from the cash records.

June 30 Bank Reconciliation Balance per bank $ 7,000 Add: Deposits in transit 1,540 Deduct: Outstanding checks (2,000) Balance per books $ 6,540 Month of July Results Balance July 31 Per Bank $8,650 Per Books $9,250 July deposits Per bank 4,500 per books 5,810 July Checks per bank 4,000 per books 3,100 July note collected (not included in July deposits) per bank 1,500 per books July bank service charge per bank 15 per books July NSF check from a customer, returned by the per bank 335 per books (recorded by bank as a charge)

Instructions (a) Prepare a bank reconciliation going from balance per bank and balance per book to correct cash balance. (b) Prepare the general journal entry or entries to correct the Cash account

In the answer on chegg.com it gives Add: Deposit in transit as 2,850 and Less: Outstanding checks as 1,100 but I have no idea where those numbers came from.