Perth Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. 

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,700; receipts $74,000; disbursements $73,570; and balance, August 31, $19,130. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,800 and outstanding checks of $4,500. In addition, 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 was journalized and posted for $40. 

Instructions 

a. Determine deposits in transit. 

b. Determine outstanding checks. 

c. Prepare a bank reconciliation at August 31. 

d. Journalize the adjusting entry(ies) to be made by Perth Inc. at August 31.

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Balance, August 1 August deposits Checks cleared in August Bank credit memorandum: Interest earned Bank debit memorandum: Safety deposit box fee Service charge Balance, August 31 $18,400 25 71,000 68,678 50 20,692 45