Question

In the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiles the following information:

Cash balance per company books on September 30: $ 6,270.
Deposits in transit at month-end $1,310.
Outstanding checks at month-end $630.
Bank charge for printing new checks $50.
Note receivable and interest collected by bank on Marks' behalf $760.
A check given to Marks during the month by a customer is returned by the bank as NSF $490.

The adjusted cash balance per the books on September 30 is:

a. $6,490
b. $6,980
c. $8,150
d. $5,830

Answer 1

The adjusted cash balance per the books on September 30 is b. $6,980. Therefore , b. $6,980 is correct .

Here's how we can arrive at the answer:

Start with the cash balance per company books on September 30: $6,270.

Add the deposits in transit at month-end: $1,310.

Add the note receivable and interest collected by the bank on Marks' behalf: $760.

Subtract the outstanding checks at month-end: $630.

Subtract the bank charge for printing new checks: $50.

Subtract the check given to Marks during the month by a customer that was returned by the bank as NSF: $490.

So, the calculation is as follows:

$6,270 + $1,310 + $760 - $630 - $50 - $490 = $6,980

Therefore, the adjusted cash balance per the books on September 30 is $6,980.