Question

The April 30 bank statement for Trimble Corporation shows an ending balance of $35,649. The unadjusted cash account balance was $29,550. The accountant for Trimble gathered the following information: There was a deposit in transit for $4,488. The bank statement reports a service charge of $69. A credit memo included in the bank statement shows interest earned of $255. Outstanding checks totaled $11,571. The bank statement included a $1,170 NSF check deposited in April. What is the true cash balance as of April 30

Answer 1

$28,566

Step-by-step explanation:

Calculation to determine the true cash balance as of April 30

Using this formula

True cash balance as of April 30

=Unadjusted bank balance + Deposits - Outstanding checks

Let plug in the formula

True cash balance as of April 30

=$35,649 + $4,488 - $11,571 = $28,566

Therefore the true cash balance as of April 30 will be $28,566