Final answer:
The adjusted cash balance per books for Rodgers Company on May 31 is calculated by adding notes receivable and interest collected by the bank to the starting book balance and then subtracting bank charges for check printing and NSF checks. The deposits in transit and outstanding checks are not part of this calculation as they reconcile the bank statement. The adjusted cash balance per books is $5,112. a. $5,112
Step-by-step explanation:
To calculate the adjusted cash balance per books for Rodgers Company as of May 31, we must take the cash balance per books and adjust it for the reconciling items provided. Starting with the cash balance per books of $4,487, we add the notes receivable and interest collected by the bank, which is $836, because these increase the cash balance. Then, we subtract the bank charge for check printing of $42, and the NSF (non-sufficient funds) check of $169, because both these items reduce the cash balance.
Deposits in transit and outstanding checks are not adjusted against the book balance; they are used to reconcile the bank statement balance. Deposits in transit will be added and outstanding checks will be subtracted in reconciling the ending cash balance per the bank statement to the company's book balance. Since they do not affect the company's book balance, they will not be included in our calculation here.
The adjusted cash balance per books is calculated as follows:
- Starting book balance: $4,487
- Add: Notes receivable and interest: +$836
- Subtract: Bank charge for check printing: -$42
- Subtract: NSF check: -$169
Adjusted book balance = $4,487 + $836 - $42 - $169 = $5,112.
Therefore, the adjusted cash balance per books on May 31 is $5,112 (Option a).