Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Chapter 7 - Fraud, Internal Control, and Cash - Exercises - Page 377: E7-10

Answer

1) Deposit on Transit on June 30 - 750 dollars Deposit in Transit on July 31 - 2,050 dollars 2) Outstanding checks on June 30 - 940 dollars Deposit in Transit on July 31 - 2,040 dollars 3) Deposit on Transit on August 31 - 1,700 dollars Deposit in Transit on September 30 - 2,200 dollars 4) Outstanding checks on August 31 - 2,400 dollars Deposit in Transit on September 30 - 2,100 dollars

Work Step by Step

1) Add: Deposit for the month 16,900 dollars Less: Deposit as per bank statement 15,600 dollars 2) Add: Checks issued during the month 17,500 dollars Less: Checks cleared as per bank statement 16,400 dollars 3) Add: Deposit for the month 26,400 dollars Less: Deposit as per bank statement 25,900 dollars 4) Add: Checks issued during the month 23,700 dollars Less: Checks cleared as per bank statement 16,400 dollars
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