Question

Palm Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30 $4,300 Deposits in transit 150 Notes receivable and interest collected by bank 850 Bank charge for check printing 20 Outstanding checks 2,000 NSF check 170 The adjusted cash balance per the books on April 30 is a.$2,280. b.$4,960. c.$3,110. d.$2,450.

Answer 1

$4960

Step-by-step explanation:

Given that:

Cash balance per books, 4/30 $4300

Deposits in transit 150

Notes receivable and interest collected by bank 850

Bank charge for check printing 20

Outstanding checks 2,000

NSF check 170

The adjusted cash balance per the books on April 30 can be calculated by the expression:

Adjusted cash balance per the books = Cash balance per books + Notes receivable and interest collected by bank - Bank charge for check printing - NSF check

Adjusted cash balance per the books = $4300 + 850 - 20 - 170

Adjusted cash balance per the books = $5150 - 190

Adjusted cash balance per the books = $4960