Question

A company deposits all cash receipts on the day they are received and makes all cash payments by check. The company's June bank statement shows $24,861 on deposit in the bank. The comparison of the bank statement to its cash account revealed the following: Deposit in transit 2,750 Outstanding checks 1,188 Additionally, a $35 check written and recorded by the company was incorrectly recorded by the bank as a $53 deduction. The adjusted cash balance per the bank records should be:

Answer 1

Answer: $26441

Step-by-step explanation:

Balance As per bank statement = $24861

Add: deposit in transit = $2750

Less: Outstanding checks = $1188

Add: Recording error = ($53 - $35) = $18

Adjusted cash balance = $26441