Question

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31. Cash balance per books, May 31 $5,400 Deposits in transit 375 Notes receivable and interest collected by bank 650 Bank charge for check printing 40 Outstanding checks 2,400 NSF check 140 a.$4,930 b.$5,870 c.$3,845 d.$6,245

Answer 1

b. $5,870

Step-by-step explanation:

Data given in the question

Cash balance per books, May 31 $5,400

Deposits in transit $375

Notes receivable and interest collected by bank $650

Bank charge for check printing $40

Outstanding checks $2,400

NSF check $140

The computation of the adjusted cash balance per books is shown below:

= Cash balance per books + Notes receivable and interest collected - Bank charges - NSF check

= $5,400 + $650 - $40 - $140

= $5,870