Problem 3

MSD depsits all receipts and makes all paymnet by check. The following informatuon is available from the cash records:

March 31 bank Reconciliation

Balance per bank

Add: Deposits in Transit

Deduct: Oustanding Checks

Balance per books

Month of April Result

Balance April 30

April Deposits

April Checks

April Note collected (Not inclided in April Deposits)

April bank service charge

April NSF check of a customer returned by the bank (recorded by bank service charge)

Instruction:

(a) Calculate the amount of the April 30:

1) Deposits in Transit

2) Outstanding checks

(b) What is the April 30 adjusted cash balance? Show all the work