Question

A bank statement shows a balance of $8,695 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,045, deposits in transit of $1,370, and a bank service charge of $20. Among the paid checks returned by the bank was check no. 900 in the amount of $490, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:

Answer 1

The adjusted cash balance at June 30 is $7,980

Step-by-step explanation:

In order to calculate the adjusted cash balance at June 30 we would have to make the following calculation:

adjusted cash balance at June 30=Balance as per Bank Statement+Deposit in transit-Outstanding checks+bank Service charge-returned paid check no.900

adjusted cash balance at June 30=$8,695+$1,370-$2,045+$20-$60

adjusted cash balance at June 30=$7,980

The adjusted cash balance at June 30 is $7,980