The auditors of Steffey, LTD., decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journals prepared by the company accountants, which revealed the following:

June 30: Bank balance, $355,001; deposits in transit, $86,899; outstanding checks, $42,690; general ledger cash balance, $399,210.

July 1: Cash receipts journal, $650,187; cash disbursements journal, $565,397.

July 31: Bank balance, $506,100; deposits in transit, $51,240; outstanding checks, $73,340; general ledger cash balance , $484,000. Bank statement record of deposits: $835,846; of payments: $684,747.

Required:

Prepare a four-column proof of cash covering the month of July of the current year. Identify problems, if any.

Please explain detail deposit in transit and out standing check on July 31