Question

Triple Company collected the following information to prepare its September bank reconciliation: Cash balance per books, December 31, $82,600. Note receivable of $1,750 plus $250 of interest collected, $2,000. Outstanding checks, $4,900. Deposits in transit, $2,500. Triple Company erroneously recorded a $1,000 cash outflow as a $100 cash outflow. The bank erroneously deducted $300 from Triple Company's checking account. The bank should have taken the money from a different customer's account. Bank service charges, $50. NSF check, $650. How much is the adjusted cash balance per books on December 31?

1) $83,900
2) $81,500
3) $83,000
4) $80,600

Answer 1

The adjusted cash balance per books on December 31 is $83,000.

Step-by-step explanation:

To calculate the adjusted cash balance per books on December 31, we need to go through the given information step by step.

1. Start with the cash balance per books on December 31, which is $82,600.
2. Add the note receivable of $1,750 plus $250 of interest collected, which is $2,000.
3. Add the deposits in transit of $2,500.
4. Subtract the outstanding checks of $4,900.
5. Subtract the bank service charges of $50.
6. Subtract the NSF check of $650.
7. Subtract the error made by Triple Company of recording a $1,000 cash outflow as a $100 cash outflow.
8. Subtract the error made by the bank of deducting $300 from Triple Company's checking account.

Calculating the above, the adjusted cash balance per books on December 31 is $83,000.