Ciao, Inc. had $962 in its cash account per the company's records as of June 30th. This included a deposit of $87 that was in transit on June 30th. The June 30th bank statement contained the following information: Ciao also had outstanding checks of $169. What is Ciao's adjusted cash balance at June 30th?

Question

Ciao, Inc. had $962 in its cash account per the company's records as of June 30th. This included a deposit of $87 that was in transit on June 30th. The June 30th bank statement contained the following information:  Ciao also had outstanding checks of $169. What is Ciao's adjusted cash balance at June 30th?

Quizplus · Accepted Answer

Starting cash balance per company record: $962
Deposit in transit: $87
Total available cash: $1049

Bank statement balance: $986
Outstanding checks: $169
Adjusted bank balance: $986 - $169 = $817

Adjusted cash balance:
Total available cash ($1049) - Adjusted bank balance ($817) = $232
Starting cash balance per company record ($962) - Outstanding checks ($169) + Adjusted cash balance ($232) = $1,025

Therefore, Ciao's adjusted cash balance at June 30th is $1,007 (Choice C).

Ciao, Inc Had $962 in Its Cash Account Per the Company's