Exercise 7-11 (Part Level Submission)

Perth Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.

Balance, August 1$18,400Bank debit memorandum:August deposits71,000Safety deposit box fee$25Checks cleared in August68,678Service charge50Bank credit memorandum:Balance, August 3120,692Interest earned45

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 $4,800and outstanding checks of $4,500. In addition, you determine that there was an error involving a company check drawn in August: A check for $400to a creditor on account that cleared the bank in August was journalized and posted for $40.

(a)

Determine deposits in transit.

Deposits in transit $