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    Bank Reconciliation for Adcock Plastics Company

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    Adcock Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

    MARCH 31 BANK RECONCILIATION

    Balance per bank $26,746

    Add: Deposits in transit 2,100

    Deduct: Outstanding checks (3,800)

    Balance per books $25,046

    Month of April Results

    Per Bank Per Books

    Balance April 30 $27,995 $24,355

    April deposits 8,864 12,889

    April checks 13,100 13,080

    April note collected 3,000 -0-
    (not included in April deposits)

    April bank service charge 35 -0-

    April NSF check of
    a customer returned by the bank
    (recorded by bank as a charge) 900 -0-

    Instructions

    (a) Calculate the amount of the April 30:

    1. Deposits in transit

    2. Outstanding checks

    Show all your work for potential partial credit.

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    Solution Preview

    1. Deposits in transit are deposits which have been recorded in the books and are not reflected in the bank. At of March 31, deposits in transit were 2,100. In April bank has given credit for 8,864. This would also include the deposit in ...

    Solution Summary

    The solution explains how to determine the amount of deposits in transit and outstanding checks.

    $2.19

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