Question

At July 31, Wildhorse Co. has this bank information: cash balance per bank $7,250, outstanding checks $670, deposits in transit $1,270, and a bank service charge $40. Determine the adjusted cash balance per bank at July 31.

Answer 1

The correct answer is $7,850.

Step-by-step explanation:

According to the scenario, the given data are as follows:

Cash balance per bank = $7,250

Outstanding checks = $670

Deposit in transit = $1,270

Bank service charge = $40

So, we can calculate the adjusted cash balance by using following formula:

Adjusted cash balance per bank = Cash balance per bank + Deposit in transit - Outstanding checks

= $7,250 + $1,270 - $670

= $7,850