In preparing its September 30 bank reconciliation, Frieda Corp. has the following information available: Balance per bank statement............................... $\$ 34,510$
Deposit in transit......................................................4,650
Customer's cheque returned NSF..............................325
Outstanding cheques.....................................................1,925
Bank service charges for September..............................40
Frieda's correct cash balance at September 30 is Frieda's correct cash balance at September 30 is

Question

Quizplus · Accepted Answer

To calculate Frieda Corp.'s correct cash balance at September 30, start with the balance per bank statement and adjust for the items mentioned. Add the deposit in transit (\$4,650) because it increases the company's actual cash balance but is not yet reflected in the bank statement. Subtract the customer's cheque returned NSF (\$325) and the bank service charges (\$40) because these decrease the company's actual cash balance. Do not adjust for outstanding cheques (\$1,925) in this calculation because they are already reflected in the balance per bank statement. The calculation is as follows: \$34,510 (balance per bank) + \$4,650 (deposit in transit) - \$325 (NSF cheque) - \$40 (bank service charges) = \$37,235.

In Preparing Its September 30 Bank Reconciliation, Frieda Corp $34,510\$ 34,510$34,510

In Preparing Its September 30 Bank Reconciliation, Frieda Corp $\$ 34,510$