The cash records of the Dillon Company show the following: 1. The July 31 bank reconciliation indicated that deposits in transit totaled $390. During August the general ledger account, Cash shows deposits of $11,800, but the bank statement indicates that only $9,540 in deposits were received during the month. 2. The July 31 bank reconciliation also reported outstanding checks of $850. During the month of August, the Dillon Company books show that $11,670 of checks were issued, yet the bank statement showed that $10,500 of checks cleared the bank in August. There were no bank debit or credit memoranda and no errors were made by either the bank or the Dillon Company. (a) What were the deposits in transit at August 31?
The cash records of the Dillon Company show the following:
1. The July 31 bank reconciliation indicated that deposits in transit totaled $390. During August the
general ledger account, Cash shows deposits of $11,800, but the bank statement indicates that only
$9,540 in deposits were received during the month.
2. The July 31 bank reconciliation also reported outstanding checks of $850. During the month of
August, the Dillon Company books show that $11,670 of checks were issued, yet the bank statement
showed that $10,500 of checks cleared the bank in August.
There were no bank debit or credit memoranda and no errors were made by either the bank or the
Dillon Company.
(a) What were the deposits in transit at August 31?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
