Consider the following situations for Company A: Situation #1: On the June 30 ba
ID: 2456155 • Letter: C
Question
Consider the following situations for Company A:
Situation #1:
On the June 30 bank reconciliation, deposits in transit total $720. During July, the Cash account in the general ledger shows deposits of $15,750. The bank statement for July shows that $15,600 in deposits were received during the month.
Situation #2:
On the June 30 bank reconciliation, outstanding checks were $680. During the month of July, the Cash account in the general ledger shows that $17,200 of checks were issued. The bank statement showed that $16,400 of checks cleared the bank in July.
Situation #3:
In September, deposits per the bank statement totaled $26,700, deposits per books were $25,400, and deposits in transit at September 30 were $2,100.
Situation #4:
In September, cash disbursements per books were $23,700, checks clearing the bank were $25,000, and outstanding checks at September 30 were $2,100.
In all 4 situations, there were no bank debit or credit memos. Also, no Cash account errors were made by either the bank of the company.
In situation #1, the deposits in transit at July 31 were $ ___________.
None of these answers are correct
$720
$870
$895
$620
Explanation / Answer
correct option is "C" - 870
[15750-15600+720]