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Crane Inc's bank statement from Western Bank at August 31, 2025, shows the following information. Balance, August 1 August deposits Cheques cleared in August Bank credit for interest earned not yet accrued Bank debit for safety deposit box fee Bank service charge Balance, August 31 $13,448 59,860 (56,316) 45 (25) (50) $16,962 A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of $3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.

Crane Inc's bank statement from Western Bank at August 31, 2025, shows the following information. Balance, August 1 August deposits Cheques cleared in August Bank credit for interest earned not yet accrued Bank debit for safety deposit box fee Bank service charge Balance, August 31 $13,448 59,860 (56,316) 45 (25) (50) $16,962 A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of $3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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(a) * Your answer is incorrect. Calculate deposits in transit at August 31. Deposits in transit $ 3280
Transcribed Image Text:(a) * Your answer is incorrect. Calculate deposits in transit at August 31. Deposits in transit $ 3280
Crane Inc's bank statement from Western Bank at August 31, 2025, shows the following information. Balance, August 1 August deposits Cheques cleared in August Bank credit for interest earned not yet accrued Bank debit for safety deposit box fee Bank service charge Balance, August 31 $13,448 59,860 (56,316) 45 (25) (50) $16,962 A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of $3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.
Transcribed Image Text:Crane Inc's bank statement from Western Bank at August 31, 2025, shows the following information. Balance, August 1 August deposits Cheques cleared in August Bank credit for interest earned not yet accrued Bank debit for safety deposit box fee Bank service charge Balance, August 31 $13,448 59,860 (56,316) 45 (25) (50) $16,962 A summary of the Cash account in the ledger for August shows the following: Reconciled cash balance, August 1, $13,858; cash receipts deposited $63,140; cheque disbursements $60,327; and unreconciled cash balance, August 31, $16,671. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,100 and outstanding cheques of $3,690. In addition, you determine that there was an error involving a company cheque drawn in August: A cheque for $400 payable to a supplier on account that cleared the bank in August was journalized and posted for $40.
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