Daniels Company deposits all receipts and makes all payments by check. The follo

ID: 2351283 • Letter: D

Question

Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records:
MARCH 31 BANK RECONCILIATION

Balance per bank $26,746
Add: Deposits in transit 2,100
Deduct: Outstanding checks (3,800)
Balance per books $25,046

Month of April Results

Per Bank Per Books

Balance April 30 $27,995 $24,355
April deposits 8,864 13,889
April checks 13,100 14,080
April note collected 3,000 -0-
(not included in April deposits)
April bank service charge 35 -0-
April NSF check of
a customer returned by the bank
(recorded by bank as a charge) 900 -0-

Instructions
Calculate the amount of the April 30:
1. Deposits in transit
2. Outstanding checks
Show all your work for potential partial credit.

Explanation / Answer

1. Deposits in transit

Opening In transit balance

2100

April deposits

5025

Bank charges

Less: Note collected

-3000

Ending In transit balance

4160

2. Outstanding checks

Opening outstanding checks

3800

April outstanding checks

980

NSF check

900

Ending outstanding checks

5680