week 8 Bank reconciliations- Deposits in transit and outstanding checks

30 Sep No Comments

Bank reconciliations: Deposits in transit and outstanding checks

Bank reconciliations: Deposits in transit and outstanding checksLee Company’s May 31 bank reconciliation shows outstanding checks of $1,870. The Cash account in the general ledger shows total checks issued of $27,500 during June. The June bank statement shows that checks totalling $25,900 have cleared the bank.Required:What is the total amount of outstanding checks that would appear in the June 30 bank reconciliation?Note: Assume that all outstanding checks from the previous month have cleared the bank by the end of the current month. 

On May 31, there were $1,870 of outstanding checks. The June bank statement indicates cleared checks of $25,900, which includes the outstanding checks on May 31. Therefore, of the total checks that the bank cleared during June ($25,900), only $24,030 ($25,900 – $1,870) was paid by the bank for checks issued by Lee in June. Lee Company’s records indicate that they issued checks for $27,500 during June. The difference, $3,470 ($27,500 – $24,030), is the amount of outstanding checks at the end of June.

The amount of outstanding checks is $3,470.




Click following link to download this document

week 8 Bank reconciliations- Deposits in transit and outstanding checks.docx

To view and download a complete answer, scroll down to the bottom to pay Pay to view


Would you like your assignment done free from plagiarism by an expert? Place your order now and it shall be done within the time frame you indicate.