Question

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $30,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 3,950 Outstanding checks 1,512 Additionally, a $58 check written and recorded by the company correctly, was recorded by the bank as a $85 deduction. The adjusted cash balance per the bank records should be:

Answer 1

$33,316

Step-by-step explanation:

Preparation of the adjusted cash balance per the bank records

Balance as per bank statement $30,861

Add Deposit in transit 3,950

Add Bank error (85-58) 17

Less Outstanding checks (1,512 )

Adjusted cash balance per the bank RECORDS $33,316

Therefore the adjusted cash balance per the bank records should be $33,316