Question

A company has the following: Cash balance per books, December 31, $82,600. Note receivable of $1,750 plus $250 of interest collected, $2,000. Outstanding checks, $4,900. Deposits in transit, $2,500. Bank service charges, $50. NSF check, $650. The company erroneously recorded a $1,000 cash payment on its books as a $100 cash payment. Also, the bank erroneously deducted $300 from the company’s checking account. The bank should have taken the money from a different customer’s account. How much is the adjusted cash balance per books on December 31?

Answer 1

$83,000

Step-by-step explanation:

Calculation to determine How much is the adjusted cash balance per books on December 31?

Balance per books on Dec. 31, $82,600

Add Note collected by the bank including interest $2,000

Less Bank service charge ($50)

Less NSF check ($650)

Less Book error ($900)

($1000-100)

Adjusted cash balance per books $83,000

Therefore the adjusted cash balance per books on December 31 is $83,000