Chapter 10, Problem 54RSCQ

a.

To determine

Introduction: Kiting is a process under which one writes a check for the amount which is more than the available balance in one account and then writes a check from any other bank account in other bank which also does not have enough balance, with the intention that the second check will cover the insufficient balance available in the first account.

The check which indicates the kiting.

b.

To determine

Introduction: The deposit-in-transit is referred to the amount of money which is recorded in the records of the company and is sent to the bank but is not recorded by the bank on the same date. It creates a difference in the balance of company’s records and bank records.

The check which illustrates the deposit in transit on December 31, 2018.