Question 2

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

Balance, August 1		$18,685		Bank debit memorandum:
August deposits		71,285		Safety deposit box fee		$ 100
Checks cleared in August		68,603		Service charge		125
Bank credit memorandum:				Balance, August 31		21,262
Interest earned		120

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,985; receipts $74,285; disbursements $73,495; and balance, August 31, $19,775. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,875 and outstanding checks of $4,575. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.

Determine deposits in transit.