At August 31, 2013, Annie's adjusted cash balance is after the bank reconciliation is c. $22,900
How to find the cash balance ?
To find the adjusted cash balance for Annie Corp. as of August 31, 2013, we need to reconcile the balance per bank statement with the company's cash records.
The adjusted cash balance is calculated as follows:
Adjusted cash balance = Balance per bank statement + Deposits in transit - Outstanding checks - NSF check - Bank service charges
The adjusted cash balance is therefore:
Adjusted cash balance = $21,650 + $3,900 - $2,750 - $600 - $100
= $21,650 + $3,900 - $3,450
= $25,550 - $3,450
= $22,900
The full question is:
In preparing its August 31, 2013 bank reconciliation, Annie Corp. has available the following information:
Balance per bank statement, 8/31/13 $21,650
Deposit in transit, 8/31/13 3,900
Return of customer's check not sufficient funds, 8/30/13 600
Outstanding checks, 8/31/13 2,750
Bank service charges for August 100
At August 31, 2013, Annie's adjusted cash balance is
a. $23,200 b. $25,650 c. $22,900 d. $23,750