||(L.O. 7) This exercise will illustrate how to determine the amount of deposits in transit and outstanding checks at a given date.
Shown below for Molly's Folly are the
- (1) bank reconciliation at September 30, 2014.
- (2) listing of deposits for October per the bank statement.
- (3) listing of deposits for October per the books.
- (4) listing of checks paid by the bank during October.
- (5) listing of checks written by the depositor during October.
September 30, 2014
Bank Statement for October—Deposits
Cash Receipts Journal
Bank Statement for October—Checks Paid and Debit Memos
Cash Payments Journal—Checks Issued
- (a) Prepare a list of deposits in transit at October 31, 2014.
- (b) Prepare a list of outstanding checks at October 31, 2014.
- (c) Locate any errors per books assuming information recorded in the bank's records is correct.
- (d) Locate any bank memoranda that will need to be recorded on the books.