Sage Hill Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. Balance, August 1 $18,585 Bank debit memorandum: August deposits 71,185 Safety deposit box fee $ 40 Checks cleared in August 68,663 Service charge 65 Bank credit memorandum: Balance, August 31 21,062 Interest earned 60 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,885; receipts $74,185; disbursements $73,555; and balance, August 31, $19,515. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,815 and outstanding checks of $4,515. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Determine deposits in transit. Deposits in transit $enter deposits it transit in dollars Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks $enter outstanding checks in dollars
Sage Hill Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. Balance, August 1 $18,585 Bank debit memorandum: August deposits 71,185 Safety deposit box fee $ 40 Checks cleared in August 68,663 Service charge 65 Bank credit memorandum: Balance, August 31 21,062 Interest earned 60 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,885; receipts $74,185; disbursements $73,555; and balance, August 31, $19,515. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,815 and outstanding checks of $4,515. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40. Determine deposits in transit. Deposits in transit $enter deposits it transit in dollars Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks $enter outstanding checks in dollars
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter4: Internal Control And Cash
Section: Chapter Questions
Problem 27BE
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Determine outstanding checks. (Hint: You need to correct disbursements for the check error.)
| Outstanding checks | $enter outstanding checks in dollars
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