Question

At August 31, Pratt Company has a cash balance per books of $7,717 and the following additional data from the bank statement: charge for printing Pratt Company checks $46, interest earned on checking account balance $64, and outstanding checks $827. Determine the adjusted cash balance per books at August 31.

Answer 1

The correct answer is $7,735.

Step-by-step explanation:

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

Cash balance per books = $7,717

Charge for printing = $46

Interest earned = $64

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

Adjusted cash balance = Cash balance per books - Charge for printing + interest earned

By putting the value we get,

Adjusted cash balance = $7,717 - $46 + $64

= $7,735