Red Company Received the Following October 31,20C,bank Statement

Essay

Red Company received the following October 31,20C,bank statement:
The cash account reflected the following for October:
The September 30 bank reconciliation showed:
Deposits in transit,$3,000,and outstanding cheques,$500.
Required:
A.What was the amount of the deposits in transit at October 31?
B.What was the amount of outstanding cheques at October 31?
C.Prepare a bank reconciliation for October.Use the following format:
D.Give the journal entries that should be made by Red Company based on the bank reconciliation.