Question

Larimore Company prepares bank reconciliations that adjust to the correct balance of cash, based on the following: Outstanding checks $ 177 Note collected for Larimore by bank 550 Bank service charges 27 Check written for $98 incorrectly recorded in books at $89; check cleared the bank for $98 9 NSF check 82 Unadjusted book balance 3,299 Deposits in transit 192Determine the adjusted cash balance.

Answer 1

Answer:-

$3,731

Step-by-step explanation:

The computation of the adjusted cash balance is shown below:

= Unadjusted book balance + Note collected for Larimore by bank - Bank service charges - correctly amount recorded - NSF checks

= $3,299 + $550 - $27 - $9 - $82

= $3,731

The correctly amount would be

= $98 - $89

= $9

All other transactions are related to the bank balance. So, we do not consider it