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June 30 Bank Reconciliation $15,386 3,385 (4,396 ) $14,375 Month of July Results

ID: 2479879 • Letter: J

Question

June 30 Bank Reconciliation

$15,386

3,385

(4,396

)

$14,375

Month of July Results

Per Bank

Per Books

Need to know how to find the deposits in transit and outstanding checks

Angela Lansbury Company deposits all receipts and makes all payments by check. The following information is available from the cash records.

June 30 Bank Reconciliation

Balance per bank

$15,386

Add: Deposits in transit

3,385

Deduct: Outstanding checks

(4,396

)

Balance per books

$14,375

Month of July Results

Per Bank

Per Books

Balance July 31 $19,013 $20,331 July deposits 9,891 12,770 July checks 8,792 6,814 July note collected (not included in July deposits) 3,297 July bank service charge 33 July NSF check from a customer, returned by the bank (recorded by bank as a charge) 736

Explanation / Answer

Month of July Details Per Bank Per book July Deposits                     9,891.00      12,770.00 Less Deposit in transit June 30                        (3,385)                     -   Net Deposit related to July only                           6,506            12,770 So Deposit in Transit on Jul 31.=12770-6506=                           6,264 July Checks                             8,792              6,814 Less Outsanding Checks Jun 30.                        (4,396)                     -   Net Checks issued only in July =                           4,396              6,814 Outstanding Checks on Jul 31.=6814-4396=                           2,418