The cash records of Montrose Corporation show the following:
1. The March 31 bank reconciliation indicated that deposits in transit totalled $400. During April, the general ledger account, Cash, shows deposits of $10,700, but the bank statement indicates that only $8,540 in deposits were received during the month.
2. The March 31 bank reconciliation also reported outstanding cheques of $2,100. During the month of April, Montrose Corporation's books show that $11,170 of cheques were issued, yet the bank statement showed that $11,500 of cheques cleared the bank in April.
There were no bank debit or credit memoranda and no errors were made by either the bank or Montrose Co.
Instructions
a) What were the deposits in transit at April 30?
b) What were the outstanding cheques at April 30?

Question

Quizplus · Accepted Answer

The Answer of The cash records of Montrose Corporation show the following:
1. The March 31 bank reconciliation indicated that deposits in transit totalled $400. During April, the general ledger account, Cash, shows deposits of $10,700, but the bank statement indicates that only $8,540 in deposits were received during the month.
2. The March 31 bank reconciliation also reported outstanding cheques of $2,100. During the month of April, Montrose Corporation's books show that $11,170 of cheques were issued, yet the bank statement showed that $11,500 of cheques cleared the bank in April.
There were no bank debit or credit memoranda and no errors were made by either the bank or Montrose Co.
Instructions
a) What were the deposits in transit at April 30?
b) What were the outstanding cheques at April 30?

The Cash Records of Montrose Corporation Show the Following