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 $29,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Additionally, a $49 check written and recorded by the company correctly, was recorded by the bank as a $94 deduction. The adjusted cash balance per the bank records should be:

Answer 1

The adjusted cash balance per the bank records for Ryan Company should be $29,406 after the error of the bank recording a $49 check as a $94 deduction is corrected.

Step-by-step explanation:

To find the adjusted cash balance per the bank records for Ryan Company, we need to correct the error made by the bank concerning the amount of a check. The bank mistakenly deducted $94 instead of $49. Therefore, we need to add back the difference to the balance shown on the bank statement.

The difference between $94 and $49 is $45, which should be added back to the balance. The bank statement shows a balance of $29,361. Adding the correction of $45 ($94 - $49), we get the adjusted balance:

$29,361 (bank statement balance) + $45 (correction) = $29,406 (adjusted bank balance).

Therefore, the adjusted cash balance per the bank records for Ryan Company should be $29,406.