Question

Hector Company gathered the following reconciling information in preparing its March bank reconciliation: Cash balance per books, 3/31$12,000 Notes receivable collected by bank6,000 Outstanding checks9,000 Deposits in transit4,500 Bank service charge75 NSF check1,200 Using the above information, determine the adjusted cash balance for March. a.$7,500 b.$16,725 c.$15,500 d.$12,225

Answer 1

Answer: $16,725

Step-by-step explanation:

Given the following :

Cash balance per books for March = $12,000

Notes receivable collected by banks = $6000

Bank service charge - $75

Non-sufficient fund (NSF) check - $1200

Therefore, Adjusted cash balance for March:

(balance per books + notes receivable - bank service charge - NSF check)

$(12,000 + 6,000 - 75 - 1200)

$(18000 - 1275)

= $16,725