The cash records of Crane Company show the following.For July: 1. The June 30 bank reconciliation indicated that deposits in transit total $780. During July, the general ledger account Cash shows deposits of $18,780, but the bank statement indicates that only $15,830 in deposits were received during the month. 2. The June 30 bank reconciliation also reported outstanding checks of $905. During the month of July, Crane Company books show that $17,980 of checks were issued, yet the bank statement showed that $16,350 of checks cleared the bank in July. For September: 3. In September, deposits per bank statement totaled $27,430, deposits per books were $26,210, and deposits in transit at September 30 were $2,880. 4. In September, cash disbursements per books were $23,680, checks clearing the bank were $24,480, and outstanding checks at September 30 were $2,310. There were no bank debit or credit memoranda, and no errors were made by either the bank or Crane Company.Answer the following questions.(a) In situation 1, what were the deposits in transit at July 31? The deposits in transit at July 31 $enter the deposits in transit at July 31 in dollars (b) In situation 2, what were the outstanding checks at July 31? The outstanding checks at July 31 $enter the outstanding checks at July 31 in dollars (c) In situation 3, what were the deposits in transit at August 31? The deposits in transit at August 31 $enter the deposits in transit at August 31 in dollars (d) In situation 4, what were the outstanding checks at August 31? The outstanding checks at August 31 $enter the outstanding checks at August 31 in dollars

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter6: Bank Accounts, Cash Funds, And Internal Controls

Section: Chapter Questions

Problem 1PB

See similar textbooks

Related questions

Concept explainers

Question

The cash records of Crane Company show the following.

For July:

1.		The June 30 bank reconciliation indicated that deposits in transit total $780. During July, the general ledger account Cash shows deposits of $18,780, but the bank statement indicates that only $15,830 in deposits were received during the month.
2.		The June 30 bank reconciliation also reported outstanding checks of $905. During the month of July, Crane Company books show that $17,980 of checks were issued, yet the bank statement showed that $16,350 of checks cleared the bank in July.

For September:

3.		In September, deposits per bank statement totaled $27,430, deposits per books were $26,210, and deposits in transit at September 30 were $2,880.
4.		In September, cash disbursements per books were $23,680, checks clearing the bank were $24,480, and outstanding checks at September 30 were $2,310.

There were no bank debit or credit memoranda, and no errors were made by either the bank or Crane Company.

Answer the following questions.

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

The deposits in transit at July 31

$enter the deposits in transit at July 31 in dollars

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

The outstanding checks at July 31

$enter the outstanding checks at July 31 in dollars

The deposits in transit at August 31

$enter the deposits in transit at August 31 in dollars

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

The outstanding checks at August 31

$enter the outstanding checks at August 31 in dollars

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 5 steps with 4 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions