Question

Calculate the adjusted cash balance per books of ABC Co. given the following information.:

Item Amount
Balance per bank statement $10,005
Balance per cash account book balance 9,500
Deposit in transit 300
Interest earned on the depositor's balance 55
NSF check 100
Outstanding checks 850

A. $8,550
B. $10,305
C. $9,510
D. $9,455

Answer 1

ABC Co.'s adjusted cash balance per books is calculated by starting with the cash account book balance of $9,500, adding the interest earned of $55, and subtracting the NSF check amount of $100, resulting in a balance of $9,455.

Step-by-step explanation:

To calculate ABC Co.'s adjusted cash balance per books, we start with the cash account book balance and make the necessary adjustments based on the information provided. Here's the calculation:

• Starting book balance: $9,500
• Add: Interest earned on the depositor's balance: $55
• Subtract: NSF check: $100

Adjusted cash balance per books = $9,500 + $55 - $100 = $9,455.

The correct answer is D. $9,455.