Reference no: EM132617164

The cash records of the Company show the following:

1. The July 31 bank reconciliation indicated that deposits in transit totaled $390. During August the Cash account shows deposits of $11,800, but the bank statement indicates that only $9,540 in deposits were received during the month.

2. The July 31 bank reconciliation also reported outstanding checks of $850. During the month of August, the Company books show that $11,670 of checks were issued, yet the bank statement showed that $10,500 of checks cleared the bank in August.

There were no bank debit or credit memoranda and no errors were made by either the bank or the Company.

Answer the following questions:

Problem a) Calculate the deposits in transit at August 31

Problem b) Calculate the outstanding checks at August 31