Question

The following information is available for Trinkle Company for the month of June:

1. The unadjusted balance per the bank statement on June 30 was $81,500

2. Deposits in transit on June 30 were $3,150

3. A debit memo was included with the bank statement for a service charge of $40

4. A $5,611 check written in June had not been paid by the bank

5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50

Required

Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

Answer 1

the true cash balance as on June 30 is $79,039

Step-by-step explanation:

The computation of the true cash balance as on June 30 is given below:

Unadjusted Balance as Per Bank Statement on Jun 30 $81,500

Add: Deposit in Transit Jun $3,150

Less: Outstanding Check Jun30 $(5,611)

True Cash Balance As on Jun 30 $79,039

hence, the true cash balance as on June 30 is $79,039