Question

In the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiles the following information: Cash Balance on Sep.30 : 6,275 Deposit in transit at month-end:1,300 Outstanding checks at month-end: 620 Bank charge for printing new checks:45 Note receivable and interest collected by bank on Marks' behalf: 770 A check given to Marks during the month by a customer is returned by the bank as NSF:480 The adjusted cash balance per the books on September 30 is:

1) $4,600
2) $8,160
3) $5,840
4) $6,900
5) $6,520

Answer 1

After accounting for the deposits in transit, outstanding checks, bank charges, notes receivable, and NSF checks, the adjusted cash balance for Marks Enterprises on September 30 should be $7,200. However, this answer does not match any of the options provided in the question, indicating a possible error or discrepancy.

Step-by-step explanation:

To reconcile Marks Enterprises' bank statement and calculate the adjusted cash balance for September 30, we need to consider several adjustments to the initial cash balance provided:

• The cash balance as of September 30 is $6,275.
• Deposits in transit at the end of the month ($1,300) need to be added to the cash balance.
• Outstanding checks at month-end ($620) need to be subtracted from the cash balance.
• The bank charge for printing new checks ($45) also needs to be subtracted from the cash balance.
• Notes receivable and interest collected by the bank ($770) should be added to the cash balance.
• A check returned due to non-sufficient funds, NSF ($480), needs to be subtracted from the cash balance.

Calculating the adjustments:

($6,275 + $1,300 + $770) - ($620 + $45 + $480) = $8,345 - $1,145 = $7,200

Therefore, the adjusted cash balance per the books on September 30 is $7,200, which is not one of the options provided in the question. It appears there may be a discrepancy, and none of the listed options are correct based on the information given and calculations performed.