Ex. 182
The information below relates to the Cash account in the ledger of Remington Company.
Balance September 1—$25,725; Cash deposited—$96,000.
Balance September 30—$26,100; Checks written—$95,620.
The September bank statement shows a balance of $24,635 on September 30 and the following memoranda.
CreditsDebits
Collection of $2,250 note plus interest $50$2,300NSF check: J. E. Hoover$635
Interest earned on checking account$65Safety deposit box rent$75
At September 30, deposits in transit were $6,695, and outstanding checks totaled $3,575.
Instructions
Prepare the bank reconciliation at September 30.
Ex. 183
The cash records of Landis Company show the following four situations.
1.The June 30 bank reconciliation indicated that deposits in transit total $1,080. During July the general ledger account Cash shows deposits of $23,620, but the bank statement indicates that only $23,400 in deposits were received during the month.
2.The June 30 bank reconciliation also reported outstanding checks of $1,020. During the month of July, Landis Company books show that $25,800 of checks were issued. The bank statement showed that $24,600 of checks cleared the bank in July.
3.In September, deposits per the bank statement totaled $40,100, deposits per books were $38,100, and deposits in transit at September 30 were $3,150.
4.In September, cash disbursements per books were $35,550, checks clearing the bank were $37,500, and outstanding checks at September 30 were $3,150.
There were no bank debit or credit memoranda. No errors were made by either the bank or Landis Company.
Instructions
Answer the following questions.
(a) In situation (1), what were the deposits in transit at July 31?
(b) In situation (2), what were the outstanding checks at July 31?
(c) In situation (3), what were the deposits in transit at August 31?
(d) In situation (4), what were the outstanding checks at August 31?