Question

The following information is available for Trinkle Company for the month of June: The unadjusted balance per the bank statement on June 30 was $53,439. Deposits in transit on June 30 were $2,560. A debit memo was included with the bank statement for a service charge of $12. A $4,388 check written in June had not been paid by the bank. The bank statement included a $1,000 credit memo for the collection of a note. The principal of the note was $945, and the interest collected amounted to $55. Required Determine the true cash balance as of June 30. (Hint: It is not necessary to use all of the preceding items to determine the true balance.)

Answer 1

$51,611

Explanation:

The computation of true balance is shown below:-

Trinkle Company

Particulars Amount

Unadjusted Balance $53,439

Add : Deposit in Transit Jun $2,560

Less : Outstanding Check Jun 30 $4,388

True Cash Balance As on Jun 30 $51,611

Hence, the true cash balance as on June 30 is $51,611 and the same is to be considered