The accountant for Busch Corp.was preparing a bank reconciliation as of February 28, 2016.The following items were identified: $$\begin{array} { l r }
\text { Busch's book balance } & \$ 15,000 \
\text { Outstanding checks } & 2,500 \
\text { Service charge } & 15 \
\text { Customer's NSF check returned by the bank } & 100
\end{array}$$ ? What amount will Busch report as its adjusted cash balance at February 28, 2016?

Question

The accountant for Busch Corp.was preparing a bank reconciliation as of February 28, 2016.The following items were identified: $$\begin{array} { l r } 
\text { Busch's book balance } & \$ 15,000 \
\text { Outstanding checks } & 2,500 \
\text { Service charge } & 15 \
\text { Customer's NSF check returned by the bank } & 100
\end{array}$$ ? What amount will Busch report as its adjusted cash balance at February 28, 2016?

Quizplus · Accepted Answer

To find the adjusted cash balance, start with the book balance of $15,000. Subtract the service charge ($15) and the customer's NSF check ($100), which gives $15,000 - $15 - $100 = $14,885. Outstanding checks do not affect the book balance but are considered in reconciling the bank statement balance.

The Accountant for Busch Corp ? What Amount Will Busch Report as Its Adjusted Cash