Metlock, Inc.’s bank statement from Main Street Bank at August 31, 2017, gives the following information.
|Balance, August 1||$18,600||Bank debit memorandum:|
|August deposits||71,200||Safety deposit box fee||$ 50|
|Checks cleared in August||68,653||Service charge||75|
|Bank credit memorandum:||Balance, August 31||21,092|
A summary of the Cash account in the ledger for August shows the following: balance, August 1, $18,900; receipts $74,200; disbursements $73,545; 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 $4,825 and outstanding checks of $4,525. 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.
The deposits transit. was $7825
Determine outstanding checks. (Hint: You need to correct disbursements for the check error.)
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