The cash records of Lejeune Inc. show the following situations: Deposits in transit: 1. The June 30

Question:

The cash records of Lejeune Inc. show the following situations:

Deposits in transit:

1. The June 30 bank reconciliation indicated that deposits in transit total $2,000. During July, the general ledger account Cash shows deposits of $14,750, but the bank statement indicates that $15,820 in deposits were received during the month.

2. In August, deposits per bank statement totalled $22,500 and deposits per books were $22,900.

Outstanding cheques:

1. The June 30 bank reconciliation reported outstanding cheques of $570. During July, the Lejeune books show that

$18,200 of cheques were issued. The bank statement showed that $17,200 of cheques cleared the bank in July.

2. In August, cheques issued were $22,700 and cheques clearing the bank were $23,520.

Instructions

(a) What were the deposits in transit at July 31 and at August 31?

(b) What were the outstanding cheques at July 31 and at August 31?

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Related Book For  book-img-for-question

Financial Accounting Tools for Business Decision Making

ISBN: 978-1118644942

6th Canadian edition

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

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