Question

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

Answer 1

Annie Corp's adjusted cash balance as of August 31, 2013, after performing bank reconciliation considering deposits in transit, outstanding checks, returned NSF check, and bank service charges would be $22,100.

Step-by-step explanation:

The question involves preparing a bank reconciliation statement for Annie Corp. as of August 31, 2013. To calculate Annie's adjusted cash balance, we start with the balance per bank statement and then adjust for the deposits in transit, outstanding checks, the returned customer's check due to not sufficient funds (NSF), and bank service charges. Here's how the calculation is done:

Balance per bank statement as of August 31, 2013: $21,650

• Add deposit in transit: $3,900
• Subtract outstanding checks: -$2,750
• Subtract return of customer's NSF check: -$600
• Subtract bank service charges for August: -$100

After considering the above information, the adjusted cash balance would be:

$21,650 (balance per bank) + $3,900 (deposits in transit) - $2,750 (outstanding checks) - $600 (NSF check) - $100 (service charges) = $22,100.

Therefore, the adjusted cash balance for Annie Corp. as of August 31, 2013, is $22,100.