LINK TO TEXT The cash records of Crane Inc. show the following situations: Depos

Question

LINK TO TEXT

The cash records of Crane Inc. show the following situations:
Deposits in transit: 1. The June 30 bank reconciliation indicated that deposits in transit total $2,030. During July, the general ledger account Cash shows deposits of $14,880, but the bank statement indicates that $15,780 in deposits were received during the month. 2. In August, deposits per bank statement totalled $22,520 and deposits per books were $22,940. Outstanding cheques: 1. The June 30 bank reconciliation reported outstanding cheques of $600. During July, the Crane books showed that $18,220 of cheques were issued. The bank statement showed that $17,050 of cheques cleared the bank in July. 2. In August, cheques issued were $22,730 and cheques clearing the bank were $23,640.

Explanation / Answer

Calculate deposit in transit :

Calculate outstanding checks :

July 31 August 31 Deposit in transit (2030+14880-15780) = 1130 (1130+22940-22520) = 1550

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