The following information is taken from the cash records of Tobita Delivery Serv

Question

The following information is taken from the cash records of Tobita Delivery Services:

Calculate the amount of deposits in transit at June 30.

Calculate the amount of outstanding cheques at June 30.

Assuming that the bank has made no errors, calculate the ending general ledger balance after all June adjustments have been made.

1 The June cash receipts journal recorded $97,920 of deposits made in June. 2 The June bank statement showed total credits (deposits) of $95,200 in June. 3 At May 31, the bank reconciliation showed deposits in transit of $3,600. 4 The June bank statement shows an ending balance of $24,616. 5 At May 31, the bank reconciliation showed outstanding cheques of $13,480. 6 The June general ledger, after all adjusting entries have been made, show total cheques of $103,672. 7 The June bank statement shows total cheques cleared of $104,800.

Explanation / Answer

a) Deposits in transit, June 30 Deposits per books in June $97,920 Deposits per books $95,200 Less: Deposits in transit, May 31 -$3,600 Total deposits to be accounted for. $91,600 Deposits in transit, june 30 $6,320 (b) Outstanding checks: Checks per books in June $103,672 Checks clearing bank in June $104,800 Less: Outstanding checks, May 31 -$13,480 Less : June checks cleared in June -$91,320 Outstanding Checks , June 30 $12,352 (c) Cash balance per bank $24,616 Add: (a) Deposit in transit $6,320 Less: (b) Outstanding checks -$12,352 Adjusted cash balance per books $18,584

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