Question

Question 2 Marin Inc.’s bank statement from Main Street Bank at August 31, 2022, gives the following information. Balance, August 1 $18,580 Bank debit memorandum: August deposits 71,180 Safety deposit box fee $ 90 Checks cleared in August 68,613 Service charge 115 Bank credit memorandum: Balance, August 31 21,052   Interest earned 110 A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,880; receipts $74,180; disbursements $73,505; and balance, August 31, $19,555. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,865 and outstanding checks of $4,565. In addition, you determine that there was an error involving a company check drawn in August: A check for $400 to a creditor on account that cleared the bank in August was journalized and posted for $40.

Determine deposits in transit. Deposits in transit $enter deposits it transit in dollars SHOW LIST OF ACCOUNTS LINK TO TEXT

Determine outstanding checks. (Hint: You need to correct disbursements for the check error.) Outstanding checks $enter outstanding checks in dollars SHOW LIST OF ACCOUNTS LINK TO TEXT

Prepare a bank reconciliation at August 31. (List items that increase balance as per bank & books first.) MARIN INC. Bank Reconciliation choose the accounting period For the Month Ended August 31, 2022For the Year Ended August 31, 2022August 31, 2022 select an opening name for section one Outstanding checksDeposits in transitError in recording checkSafety deposit box rentService chargeCash balance per bank statementAdjusted cash balance per bankInterest earned $enter a dollar amount select between addition and deduction AddLess : select a reconciling item Adjusted cash balance per bankOutstanding checksDeposits in transitError in recording checkSafety deposit box rentCash balance per bank statementInterest earnedService charge enter a dollar amount enter a subtotal of the two previous amounts select between addition and deduction AddLess : select a reconciling item Deposits in transitAdjusted cash balance per bankInterest earnedCash balance per bank statementOutstanding checksError in recording checkService chargeSafety deposit box rent enter a dollar amount select a closing name for section one Interest earnedError in recording checkService chargeAdjusted cash balance per bankCash balance per bank statementSafety deposit box rentDeposits in transitOutstanding checks $enter a total amount for the first section select an opening name for section two Interest earnedDeposits in transitError in recording checkService chargeSafety deposit box rentCash balance per booksAdjusted cash balance per booksOutstanding checks $enter a dollar amount select between addition and deduction AddLess : select a reconciling item Outstanding checksInterest earnedError in recording checkAdjusted cash balance per booksCash balance per booksDeposits in transitService chargeSafety deposit box rent enter a dollar amount enter a subtotal of the two previous amounts select between addition and deduction AddLess : select a reconciling item Outstanding checksDeposits in transitInterest earnedSafety deposit box rentCash balance per booksError in recording checkService chargeAdjusted cash balance per books $enter a dollar amount select a reconciling item Cash balance per booksSafety deposit box rentDeposits in transitOutstanding checksInterest earnedAdjusted cash balance per booksError in recording checkService charge enter a dollar amount select a reconciling item Safety deposit box rentOutstanding checksCash balance per booksAdjusted cash balance per booksDeposits in transitInterest earnedError in recording checkService charge enter a dollar amount enter a subtotal of the three previous amounts select a closing name for section two Error in recording checkCash balance per booksSafety deposit box rentOutstanding checksService chargeAdjusted cash balance per booksDeposits in transitInterest earned $enter a total amount for the second section SHOW LIST OF ACCOUNTS LINK TO TEXT

Answer 1

Deposit in Transit = $74180+4865-71180 = $7865

Correct Disbursements for August = $73505-40+400 = $73865
Checks Outstanding = $73865+4565-68613 = $9817

Bank Reconciliation
Cash Balance as per bank statement		$    21,052.00
Add :
Deposit in Transit		$      7,865.00
Deduct :
Outstanding Checks		$      9,817.00
Adjusted Cash Balance per Bank		$    19,100.00
Cash Balance as per books		$    19,555.00
Add :
Interest Earned		$          110.00
Deduct :
Safety Deposit Box Fee	$            90.00
Service Charge	$          115.00
Error in recording check	$          360.00	$          565.00
Adjusted Cash Balance per Books		$    19,100.00