The cash account and the December bank statement of Gomez Company showed the following: deposits made by Gomez Company during December,$90,000;deposits reflected on the December bank statement,$88,000;and deposits in transit on November 30,$5,000.What was the amount of deposits in transit at the end of December?

Question

Quizplus · Accepted Answer

Deposits in transit at the end of December can be calculated by adding the deposits made by Gomez Company during December ($90,000) to the deposits in transit on November 30 ($5,000), and then subtracting the deposits reflected on the December bank statement ($88,000). This calculation gives us $90,000 + $5,000 - $88,000 = $7,000.

The Cash Account and the December Bank Statement of Gomez