The Roscoe Company's March 31 bank statement balance was $70,000.As of March 31,outstanding checks total $22,000 and deposits in transit total $15,000.Assuming there are no other reconciling items,what was the March 31 cash balance on Roscoe's books?

Question

Quizplus · Accepted Answer

To find the cash balance on Roscoe's books, we need to adjust the bank statement balance for any outstanding checks and deposits in transit. Therefore, the cash balance on Roscoe's books would be:

Bank statement balance: $70,000
Outstanding checks: -$22,000
Deposits in transit: +$15,000

Cash balance on Roscoe's books: $63,000

The Roscoe Company's March 31 Bank Statement Balance Was $70,000