Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The cash records of Monty Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $2,210. During

The cash records of Monty Company show the following four situations.

1. The June 30 bank reconciliation indicated that deposits in transit total $2,210. During July the general ledger account Cash shows deposits of $23,820, but the bank statement indicates that only $23,600 in deposits were received during the month.

2. The June 30 bank reconciliation also reported outstanding checks of $1,350. During the month of July, Monty Company books show that $26,000 of checks were issued. The bank statement showed that $24,800 of checks cleared the bank in July.

3. In September, deposits per the bank statement totaled $40,200, deposits per books were $38,200, and deposits in transit at September 30 were $3,000.

4. In September, cash disbursements per books were $36,650, checks clearing the bank were $37,600, and outstanding checks at September 30 were $3,300.

There were no bank debit or credit memoranda. No errors were made by either the bank or Monty Company.

Answer the following questions.

a) In situation (1), what were the deposits in transit at July 31? Deposits in transit at July 31 $______________

(b) In situation (2), what were the outstanding checks at July 31? Outstanding checks at July 31 $______________

(c) In situation (3), what were the deposits in transit at August 31? Deposits in transit at August 31 $_______________

(d) In situation (4), what were the outstanding checks at August 31? Outstanding checks at August 31 $_____________

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Computer Accounting With QuickBooks Online

Authors: Donna Kay

3rd Edition

1264127278, 9781264127276

More Books

Students also viewed these Accounting questions