Question

Rodgers Company gathered the following reconciling information in preparing its May bank reconciliation. Calculate the adjusted cash balance per books on May 31. Cash balance per books, May 31 $4,432 Deposits in transit 214 Notes receivable and interest collected by bank 975 Bank charge for check printing 44 Outstanding checks 1,283 NSF check 172 a.$4,166 b.$5,191 c.$3,363 d.$1,189

Answer 1

Adjusted cash balance per books is $5,191.

Step-by-step explanation:

Adjusted cash balance per can be estimated by adding to ending cash balance transactions such as interest earned and notes receivable amount and by deducting transactions such as bank service charged, penalties, and NSF checks.

This can be estimated as follows:

Rodgers Company

May Bank Reconciliation Statement

Particulars Amount ($) Total ($)

Cash balance per books, May 31 4,432

Add:

Notes recbl & int. collected by bank 975

Less:

Bank charge for check printing (44)

NSF check (172) (216)

Adjusted cash balance per books 5,191