On October 31,2013,the bank's records say that your company has $12,956.73 in its checking account.You are aware of three outstanding checks for a total of $2,112.19.During October,2013,the bank rejected two deposited checks from customers totaling $654.19 because of insufficient funds and charged you $12.00 in service fees.You had not yet received notice about the bad checks,but you were aware of and have recorded the $12.00 of service fees.Prior to adjustment on October 31,2013,your Cash account would have a balance of:

Question

Quizplus · Accepted Answer

Starting balance in the checking account = $12,956.73
Outstanding checks = $2,112.19 (deducted from the starting balance)
Rejected checks = $654.19 (not deducted from the starting balance)
Service fees = $12.00 (already recorded and deducted from the starting balance)

Adjusted balance in the checking account = Starting balance - Outstanding checks + Rejected checks - Service fees
= $12,956.73 - $2,112.19 + $654.19 - $12.00
= $11,498.73

Therefore, the prior to adjustment balance in the Cash account would be $11,498.73.

On October 31,2013,the Bank's Records Say That Your Company Has