Question

The following data was identified by Raines Corp. in preparation of its bank reconciliation on October 31, 2017:

Bank statement balance $30,700
Raines' book balance (before adjustments) ?
Outstanding checks 4200
NSF checks 400
Service charge 300
Deposits in transit 3100
Interest earned on checking amount 100

Required:
What is the adjusted cash balance on October 31, 2017?

Answer 1

To calculate the adjusted cash balance on October 31, 2017 for Raines Corp., subtract the outstanding checks and NSF checks, deduct the service charge, and add deposits in transit and interest earned on checking.

Step-by-step explanation:

To calculate the adjusted cash balance on October 31, 2017, we need to consider the differences between the bank statement balance and Raines' book balance.

1. Start with the bank statement balance of $30,700.

2. Subtract outstanding checks of $4,200 and NSF checks of $400.

3. Deduct the service charge of $300.

4. Add deposits in transit of $3,100 and interest earned on checking of $100.

The adjusted cash balance on October 31, 2017 is calculated as follows: $30,700 - $4,200 - $400 - $300 + $3,100 + $100 = $29,900.

Answer 2

the adjusted cash balance on October 31, 2017 is $29,600

Step-by-step explanation:

The computation of the adjusted cash balance on October 31, 2017 is shown below:

Bank statement balance $30,700

Add: Deposits in transit $3,100

Less; Outstanding checks $4,200

Adjusted cash balance on October 31, 2017 $29,600

hence, the adjusted cash balance on October 31, 2017 is $29,600