Perth Inc.s bank statement from Main Street Bank at August 31, 2025, gives the following information. A
Question:
Perth Inc.’s bank statement from Main Street Bank at August 31, 2025, 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.
Instructionsa. 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.
Step by Step Answer:
Accounting Tools For Business Decision Making
ISBN: 9781119791058
8th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell