Question

6. The cash records of Landis Company show the following four situations. 1. The June 30 bank reconciliation indicated that deposits in transit total $1,080. During July the general ledger account Cash shows deposits of $23,620, but the bank statement indicates that only $21,400 in deposits were received during the month. 2. The June 30 bank reconciliation also reported outstanding checks of $1,020. During the month of July, Landis Company books show that $26,800 of checks were issued. The bank statement showed that $24,600 of checks cleared the bank in July. 3. In September, deposits per the bank statement totaled $40,100, deposits per books were $38,100, and deposits in transit at September 30 were $3,150. 4. In September, cash disbursements per books were $36,550, checks clearing the bank were $37,500, and outstanding checks at September 30 were $3,150. There were no bank debit or credit memoranda. No errors were made by either the bank or Landis Company. Instructions Answer the following questions. (a) In situation (1), what were the deposits in transit at July 31?(3%) (b) In situation (2), what were the outstanding checks at July 31?(3%) (c) In situation (3), what were the deposits in transit at August 317 (3%) (d) In situation (4), what were the outstanding checks at August 31?(3%)

Answer 1

1	Deposit in transit on June 30 reconciliation	1080
	Ledger account cash deposit on July	23620
		24700
	Less Bank statement cash deposit shown	21400
	Deposit in transit at July 31	3300
2	Check ount standing as on June	1020
	Add New checjs issued	26800
	Less Check Cleared	24600
	Outstanding Check at July 31	3220
3	Deposit as Per Bank statement	40100
	Less Deposit as per Books	38100
	Add Deposit in transit September	3150
	Deposit in transit august	5150
4	Cash disbursement as per bank statement	37500
	Less Cash disbursement as per book	36550
	Add Check outstanding as on September	3150
	Check outstanding as on august	4100