mazor inc s bank statement from hometown bank at august 31 2012 gives the following 533938

Mazor Inc.”s bank statement from Hometown Bank at August 31, 2012, gives the following information.

A summary of the Cash account in the ledger for August shows the following: balance, August

1, $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 reconciliation 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 Mazor Inc. at August 31.