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ituation 1, what were the deposits in transit at July 31 )I h situation 2, what were the outstanding checks at July 31? In situation 3, what were the deposits in transit at August 31 In situation 4, what were the outstanding checks at August 31? E7-11 Perth Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the on and following information. Bank debit memorandum: Balance, August 1 August deposits $18,400 71,000 68,678 Service charge $ 25 50 Safety deposit box fee Checks cleared in August Bank credit memorandum: 20,692 Balance, August 31 Interest earned 45 A summary of the Cash account in the ledger for August shows the following: balance, August I, $18,700; receipts $74,000; disbursements $73,570; and balance, August 31, $19,130. Analysis reveals that the only reconciling items on the July 31 bank reconcili- ation were a deposit in transit for $4,800 and outstanding checks of $4,500. 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. Instructions (a) Determine deposits in transit. (b) Determine outstanding checks. (Hint: You need to correct disbursements for the check error:) (c) Prepare a bank reconciliation at August 31. (d) Journalize the adjusting entry(ies) to be made by Perth Inc. at August 31 E7-12 A new accountant at Wyne Inc. is trying to identify which of the amounts shown hould be reported as the current asset "Cash and cash equivalents" in the year-end below s balance sheet, as of April 30, 2017

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