Question

Grace Company gathered the following reconciling information in preparing its July bank reconciliation: Cash balance per books, 7/31 $4,500 Deposits in transit 150 Notes receivable and interest collected by bank 850 Bank charge for check printing 20 Outstanding checks 2,000 NSF check 170 The adjusted cash balance per the books on July 31 is____.a. $5,010.

b. $3,310.
c. $3,460.
d. $5,160.

Answer 1

The adjusted cash balance per the books for Grace Company on July 31 is $5,160, after adding the notes receivable and interest collected by the bank, and subtracting the bank charge for check printing and the NSF check from the initial cash balance per books.

Step-by-step explanation:

To calculate the adjusted cash balance per the books on July 31 for Grace Company, we need to make several adjustments to the cash balance per books based on the given reconciling information.

Cash balance per books on 7/31: $4,500

Add: Notes receivable and interest collected by bank: $850

Less: Bank charge for check printing: $20

Less: NSF check: $170

Adjusted cash balance per books calculation:

Starting balance: $4,500
+ Notes receivable and interest: $850
- Bank charge for check printing: $20
- NSF check: $170

Adjusted Cash Balance: $4,500 + $850 - $20 - $170 = $5,160

Therefore, the correct answer is d. $5,160.

Answer 2

d. $5,160

Step-by-step explanation:

Calculation to determine what The adjusted cash balance per the books on July 31 is

Cash balance per books, 7/31 $4,500

Add Notes receivable and interest collected by bank $850

Less Bank charge for check printing ($20)

Less NSF check ($170)

Cash balance per the books on July 31 $5,160

Therefore The adjusted cash balance per the books on July 31 is $5,160