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I am not understanding how to figure the outstanding checks. PLEASE HELP! Skysong, Inc.'s bank statement from Main Street Bank at August 31, 2017,...

I am not understanding how to figure the outstanding checks. PLEASE HELP!!

Skysong, Inc.'s bank statement from Main Street Bank at August 31, 2017, gives the following information.


Balance, August 1

$18,700

Bank debit memorandum:


August deposits

71,300

Safety deposit box fee

$ 125Checks cleared in August

68,578

Service charge

150Bank credit memorandum:



Balance, August 31

21,292  Interest earned

145





A summary of the Cash account in the ledger for August shows the following: balance, August 1, $19,000; receipts $74,300; disbursements $73,470; and balance, August 31, $19,830. Analysis reveals that the only reconciling items on the July 31 bank reconciliation were a deposit in transit for $4,900 and outstanding checks of $4,600. 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.

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2 comments
  • thank your very much for the detailed solving. I really needed that!
    • erinzeringue
    • Aug 02, 2018 at 8:32pm
  • U r most welcome :)
    • roli_accfin
    • Aug 02, 2018 at 8:33pm

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