The cash records of Givens Company show the following four situations. The June

Question

The cash records of Givens Company show the following four situations.

The June 30 bank reconciliation indicated that deposits in transit total $720. During July the general ledger account Cash shows deposits of $15,750, but the bank statement indicates that only $15,600 in deposits were received during the month.

The June 30 bank reconciliation also reported outstanding checks of $680. During the month of July, Givens Company books show that $17,200 of checks were issued. The bank statement showed that $16,400 of checks cleared the bank in July.

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.

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.

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

Instructions

Answer the following questions.

In situation (1), what were the deposits in transit at July 31?
$

In situation (2), what were the outstanding checks at July 31?
$

In situation (3), what were the deposits in transit at August 31?
$

In situation (4), what were the outstanding checks at August 31?
$

Explanation / Answer

1. $870. Since 720 of the 15600 was prior month's the remaining 14880 is for July. Then the 15750 - 14880 leaves 870 still needing to be collected. 2. $1,480. Similar to #1. Since 680 still needs to show up on the bank's statement, it reduces the 16400 to 15720. Then that is applied to the 17200 to get 1480 3. $3,400. The 2100 is from the amount on the books of 25400. The remainder(23300) was actually collected in Sept. Then 26700 - 23300 = 3400 4. $3,400. The 2100 has yet to be collected, and comes from the 23700. The remainder(21600) reduces the amount actually collected(25000) to get the checks written in Aug but collected in Sept.(3400)

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