Question

Shady Mills Company Cash account shows an ending balance of $1,200. The bank statement shows an ending balance of $770. Additional information includes: A.$30 Service charge B.$300 Deposit in transit C.50 Outstanding checks

Answer 1

Adjusted Bank Balance $1,020

Step-by-step explanation:

The question is incomplete, therefore, the complete question is as follows:

Shady Mills Company Cash account shows an ending balance of $1200. The bank statement shows an ending balance of $770. Additional information includes:

$30 Service Charge

$300 Deposit in transit

$50 Outstanding Checks

What is the adjusted bank balance?

Solution:

The process for determining the Adjusted Bank Balance is a simple one, basically, we consider how the additional information affects the discrepancies between both the Cash balance and the bank balance.

The Calculation is as follows:

The Ending Bank Balance $770

Add: Deposit in Transit $300

Less: Outstanding Checks ( $50)

Adjusted Bank Balance $1,020

Note that the Service Charge will be part of the adjustment of the Cash Balance.