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How do I determine what the outstanding checks amount is? How do I determine what the despots in transit amount is?
Splish Brothers Inc.’s bank statement from Main Street Bank at August 31, 2017, gives the following information. Balance, August 1 $18,540 Bank debit memorandum: AUQUSt deposits 71,140 Safety deposit box fee :15 50 Checks cleared in August 68,653 Service charge 75 Bank credit memorandum: Balance, August 31 20,972Interest earned 70 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,840; receipts $74,140; disbursements $73,545; and balance, August31, $19,435. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,825 and outstanding checks of $4,525. Inaddition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August wasjournalized and posted for $40.
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