60.1K

Verified Solution

Link Copied!

Question 6 The cash records of Whispering Winds Corp. show the following four situations 1. The June 30 bank reconciliation indicated that deposits in transit total $741. During July, the general ledger account Cash shows deposits of $16,660, but the bank statement indicates that only $15,970 in deposits were received during the month 2. The June 30 bank reconciliation also reported outstanding checks of $711. During the month of July, Whispering Winds Corp.'s books show that $17,710 of checks were issued. The bank statement showed that $16,640 of checks cleared the bank in July 3. In September, deposits per the bank statement totaled $26,930, deposits per books were $25,560, and deposits in transit at September 30 were $2,540. 4. In September, cash disbursements per books were $23,960, checks clearing the bank were $25,200, and outstanding checks at September 30 were $2,170. There were no bank debit or credit memoranda. No errors were made by either the bank or Whispering Winds Corp.. Answer the following questions (a) In situation (1), what were the deposits in transit at July 31? Deposits in transit at July 31 (b) In situation (2), what were the outstanding checks at July 31? Outstanding checks at July 31 (c) In situation (3), what were the deposits in transit at August 31

Answer & Explanation Solved by verified expert

See Answer