Question

Zebb Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, 9/30 $12,000 Note receivable collected by bank 6,000 Outstanding checks 9,000 Deposits in transit 4,500 Bank service charge 75 NSF check 1,200 Determine the cash balance per books (before adjustments) for Zebb Company. Group of answer choices

Answer 1

We need to reverse the order of a normal reconciliation:

Bank balance $12,000

- Note collected by bank ($6,000)

- Deposits in transit ($4,500)

+ Bank fees $75

+ NSF check $1,200

Cash balance before reconciliation adjustments = $2,775