Question

Tanner, Inc.'s checkbook balance on December 31, 2008 was 21,200. In addition, Tanner held the following items in its safe on December 31. (1) A check for 450 from Peters, Inc. received December 30, 2008, which was not included in the checkbook balance. (2) An NSF check from Garner Company in the amount of 900 that had been deposited at the bank, but was returned for lack of sufficient funds on December 29. The check was to be redeposited on January 3, 2009. The original deposit has been included in the December 31 checkbook balance. (3) Coin and currency on hand amounted to 1,450. The proper amount to be reported on Tanner's balance sheet for cash at December 31, 2008 is __________.

Answer 1

To calculate the correct cash balance for Tanner, Inc., adjustments are made to the checkbook balance to account for additional items in the safe. The starting balance is increased by $450 for the check received, decreased by $900 for the NSF check, and increased by $1,450 for the coin and currency on hand, resulting in an adjusted cash balance of $22,200.

Step-by-step explanation:

To determine the proper amount to be reported on Tanner's balance sheet for cash at December 31, 2008, we need to adjust the checkbook balance based on the additional items provided. Here's how we make the adjustments:

• Add the check from Peters, Inc. of $450 since it was not included in the checkbook balance.
• Subtract the NSF check from Garner Company of $900 because it was included in the checkbook balance but was not actually available funds due to lack of sufficient funds.
• Add the coin and currency on hand of $1,450 as it is part of the company's cash position.

The adjusted cash balance would be calculated as follows:

1. Starting checkbook balance: $21,200
2. Add: Check from Peters, Inc.: +$450
3. Subtract: NSF check from Garner Company: -$900
4. Add: Coin and currency on hand: +$1,450

The calculation is as follows:

$21,200 (starting balance) + $450 (check from Peters) - $900 (NSF check) + $1,450 (coin and currency) = $22,200 (adjusted cash balance)

Therefore, the correct amount to report on Tanner's balance sheet for cash at December 31, 2008, is $22,200.

Answer 2

To determine the correct cash balance on Tanner, Inc.'s balance sheet for December 31, 2008, the initial checkbook balance is adjusted by adding the check from Peters, Inc., subtracting the NSF check, and adding the coin and currency on hand, resulting in a correct balance of $22,200.

Step-by-step explanation:

The proper amount to be reported on Tanner, Inc.'s balance sheet for cash at December 31, 2008, can be calculated by adjusting the checkbook balance with the relevant items held by the company on that date. The initial checkbook balance is $21,200.

• A check for $450 from Peters, Inc. should be added to the balance, as it was not included previously.
• An NSF check for $900 should be subtracted because it was included in the balance but returned for insufficient funds.
• Coin and currency on hand are $1,450 and should also be added to the balance.

To calculate the correct cash balance, we start with the checkbook balance and make the following adjustments:

1. Checkbook balance: $21,200
2. Add: Check from Peters, Inc.: +$450
3. Subtract: NSF check from Garner Company: -$900
4. Add: Coin and currency on hand: +$1,450

So the calculation is $21,200 + $450 - $900 + $1,450 = $22,200. This total represents the correct cash balance on the balance sheet for December 31, 2008.