Question: I have had trouble solving this problem. I am unsure how to determine the Deposits in transit. I understand that the difference in the ledger

I have had trouble solving this problem. I am unsure how to determine the Deposits in transit. I understand that the difference in the ledger is due to the 300 dollar difference in outstanding checks and a deposit in transit.

The bank statement has the following.

Balance, August 1$18,620 Bank debit memorandum:August deposits 71,220 Safety deposit box fee$125 Checks cleared in August 68,578 Service charge 150 Bank credit memorandum:Balance, August 3121,132Interest earned 145

A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,920; receipts $74,220; disbursements $73,470; and balance, August 31, $19,670. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,900and outstanding checks of $4,600. 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.

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