Question

In preparing its August 31, 2010 bank reconciliation, Adel Corp. has available the following information:

Balance per bank statement, 8/31/10 $21,650
Deposit in transit, 8/31/10 3,900
Return of customer's check for insufficient funds, 8/30/10 600
Outstanding checks, 8/31/10 2,750
Bank service charges for August 100
At August 31, 2010, Adel's correct cash balance is
A.$22,800.
B.$22,200.
C.$22,100.

Answer 1

Answer: C $22,100

Explanation: Bank Reconciliation

8/31/10 Bank Balance $21,650

Add:

8/31/10 Deposit in transit. $3,900

Less:

8/31/10 Outstanding Chq. $2,750

8/30/10 Rtd Chq. $600

8/31/10 Bank Charges. $100

Cash book balance $22,100