Question

The cash records of Jasmin Company show the following four situations:

1) The June 30 bank reconciliation indicated that deposits in transit total $2,110. 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 $1,250. During the month of July, Jasmin 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 $2,900.

4) In September, cash disbursements per books were $36,550, checks clearing the bank were $37,500, and outstanding checks at September 30 were $3,200.

There were no bank debit or credit memoranda. No errors were made by either the bank or Jasmin Company.

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?

Use for answer (fill in the blanks)

(a) Deposits in transit:

Deposits per books in July........................

Less: Deposits per bank in July..................

Deposits in transit, June 30................

July receipts deposited in July.......................

Deposits in transit, July 30..............................

(b) Outstandidng checks

Checks per books in July................................

Less: Checks clearing bank in July................

Outstanding checks, June 30............

July checks cleared in July...........................

Outstanding checks, July 31.......................

(c) Deposits in transit

Deposits per bank statement in September..............

Add: deposits in transit, September 30.....................

Total deposits to be accounted for.............................

Less: Deposits per books.........................................

Deposits in transit, August 31..................................

(d) Outstanding checks

Checks clearing bank in September........

Add: Outstanding checks, September 30.........

Total checks to be accounted for...................

Less: Cash disbursements per books..............

Outstanding checks, August 31..............

Answer 1

Req a:
Deposits in transit at July:
Deposits in transit at June			2110
Add: Deposits as per books			23620
Less: Deposits as per bank			23400
Deposit in transit at july end			2330
Req b:
Outstanding checks at june end			1250
Add: checks issued as per books			25800
Less: Checks cleared as per bank			24600
Outstanding checks at july end			2450
Req c:
Deposit in transit at Sep end			2900
Add: Deposits in bank			40100
Less: Deposits in books			38100
Deposit in transit at Aug end			4900
Req d:
Outstanding chcks at Sep end			3200
Add: Checks cleared as per bank			37500
Less: Checks issued during the month			36550
Outstanding checks at Aug end			4150