Question

The following information is needed to reconcile the cash balance for Gourmet Catering Services. ​* A deposit of $ 5 comma 700 is in transit. ​* Outstanding checks total $ 1 comma 300. ​* The book balance is $ 6 comma 500 at February​ 28, 2019. ​* The bookkeeper recorded a $ 1 comma 700 check as $ 17 comma 100 in payment of the current​ month's rent. ​* The bank balance at February​ 28, 2019 was $ 16 comma 040. ​* A deposit of $ 200 was credited by the bank for $ 2 comma 000. ​* A​ customer's check for $ 3 comma 200 was returned for nonsufficient funds. ​* The bank service charge is $ 60. What was the adjusted book​ balance?

Answer 1

$18,640

Step-by-step explanation:

Given that,

Balance as per books = $6,500

Non Sufficient fund checks returned by the banks = $3,200

Bank service charge = $60

The bookkeeper recorded a $ 1,700 check as $ 17,100 in payment of the current​ month's rent.

Adjusted book​ balance:

= Balance as per books + Wrong entry - Non Sufficient fund checks returned by the banks - Bank service charge

= $6,500 + ($17,100 - $1,700) - $3,200 - $60

= $18,640