Question

In preparing its bank reconciliation for the month of April 2018, Bonita, Inc. has available the following information.

Balance per bank statement, 4/30/18 $79000
NSF check returned with 4/30/18 bank statement 970
Deposits in transit, 4/30/18 10200
Outstanding checks, 4/30/18 10800
Bank service charges for April 40

What should be the adjusted cash balance at April 30, 2018?

Answer 1

The adjusted cash balance at April 30, 2018 is $78,400

Step-by-step explanation:

The computation of the adjusted cash balance is shown below:

= Balance per bank statement + Deposits in transit - Outstanding checks

= $79,000 + $10,200 - $10,800

= $78,400

We simply added the deposit in transit and deducted the outstanding checks to the balance as per bank statement.

Other items which are given in the question is ignored