Red Company received the following October 31, 20C, bank statement:
The cash account reflected the following for October:
The September 30 bank reconciliation showed:
Deposits in transit, $3,000, and outstanding cheques, $500. Required:
A. What was the amount of the deposits in transit at October 31?
B. What was the amount of outstanding cheques at October 31?
C. Prepare a bank reconciliation for October. Use the following format: D. Give the journal entries that should be made by Red Company based on the bank reconciliation.

Question

Red Company received the following October 31, 20C, bank statement:
  The cash account reflected the following for October:
  The September 30 bank reconciliation showed:
Deposits in transit, $3,000, and outstanding cheques, $500. Required:
A. What was the amount of the deposits in transit at October 31?
B. What was the amount of outstanding cheques at October 31?
C. Prepare a bank reconciliation for October. Use the following format:  D. Give the journal entries that should be made by Red Company based on the bank reconciliation.

Quizplus · Accepted Answer

The Answer of Red Company received the following October 31, 20C, bank statement:
  The cash account reflected the following for October:
  The September 30 bank reconciliation showed:
Deposits in transit, $3,000, and outstanding cheques, $500. Required:
A. What was the amount of the deposits in transit at October 31?
B. What was the amount of outstanding cheques at October 31?
C. Prepare a bank reconciliation for October. Use the following format:  D. Give the journal entries that should be made by Red Company based on the bank reconciliation.

Red Company Received the Following October 31, 20C, Bank Statement