Question

Sahara ​Company's Cash account shows an ending balance of $ 840. The bank statement shows a $ 23 service charge and an NSF check for $ 80. A $ 280 deposit is in​ transit, and outstanding checks total $ 460. What is Sahara​'s adjusted cash​ balance?

Answer 1

$737

Step-by-step explanation:

Given that,

Ending cash balance = $840

Service charge = $23

NSF check = $ 80

Amount of deposit in transit = $280

Outstanding checks = $460

Total adjusted cash balance:

= Ending cash balance - Service charge - NSF check

= $840 - $23 - $80

= $737

Note:

Outstanding checks decrease the bank side of the reconciliation.

As these are the checks which are outstanding in nature which means not yet cleared as not presented for payment so it is shown as decrease in bank side while doing reconciliation.