Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$
-Refer to Dance Town Academy.How will the deposits in transit be handled on a bank reconciliation?

Question

Dance Town Academy The items listed below were identified while preparing a bank reconciliation for the company's checking account as of March 31,2013.
$\begin{array}{ll}
\text { Cash balance according to the general ledger } & ? \
\text { Bank statement balance } & \$ 18,500 \
\text { Outstanding checks } & 2,700 \
\text { Customer's bounced check } & 350 \
\text { Bank service charges } & 100 \
\text { Deposits in transit } & 1,000 \
\text { Interest earned on the checking account } & 60
\end{array}$ 
-Refer to Dance Town Academy.How will the deposits in transit be handled on a bank reconciliation?

Quizplus · Accepted Answer

Deposits in transit are added to the bank statement balance because they have been recorded in the company's books but not yet reflected in the bank statement.

Dance Town Academy the Items Listed Below Were Identified While