Epto Ergo’s bank statement from Crypto Bank at July 31, 2020, gives the following information. Balance, July 1 $18,400 Bank debit memorandum: August deposits 71,000 Safety deposit box fee $ 25 Checks...

Epto Ergo’s bank statement from Crypto Bank at July 31, 2020, gives the
following information.
Balance, July 1 $18,400 Bank debit memorandum:
August deposits 71,000 Safety deposit box fee $ 25
Checks cleared in July 68,678 Service charge 50
Bank credit memorandum: Balance, July 31 20,692
Interest earned 45
A summary of the Cash account in the ledger for July shows the following:
balance, July 1, $18,700; receipts $74,000; disbursements $73,570;
and balance, July 31, $19,130.
Analysis reveals that the only reconciling items on the June 30 bank reconciliation were a
deposit in transit for $4,800 and outstanding checks of $4,500. In addition, you determine that
there was an error involving a company check drawn in July: A check for $400 to a creditor on
account that cleared the bank in July was journalized and posted for $40.
Instructions
a) Determine deposits in transit.
b) Determine outstanding checks. (Hint: You need to correct disbursements for the
check error.)
c) Prepare a bank reconciliation at July 31.
d) Journalize the adjusting entry(ies) to be made by Epto Ergo at July 31.