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

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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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

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