Zebb Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{llcc}
\text {Cash balance per bank, 9 / 30 } &\$12,000 \
\text {Note receivable collected by bank } &6,000\
\text { Outstanding checks } &9,000\
\text {Deposits in transit } &4,500\
\text {Bank service charge } &75\
\text { NSF check } &1,200\
\end{array}$

Determine the cash balance per books (before adjustments) for Zebb Company.

Question

Zebb Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{llcc}
  \text {Cash balance per bank, 9 / 30  } &\$12,000  \
 \text {Note receivable collected by bank  } &6,000\
 \text { Outstanding checks } &9,000\
 \text {Deposits in transit  } &4,500\
 \text {Bank service charge  } &75\
 \text { NSF check } &1,200\
\end{array}$

Determine the cash balance per books (before adjustments) for Zebb Company.

Quizplus · Accepted Answer

To determine the cash balance per books (before adjustments), we will start by taking the cash balance per bank and adding the deposits in transit and collection of the note receivable by the bank, and then deducting the outstanding checks, bank service charge, and any NSF checks:

Cash balance per bank = $12,000
Add: Deposits in transit = $4,500
Add: Note receivable collected by bank = $6,000
Adjusted balance = $22,500
Deduct: Outstanding checks = $9,000
Deduct: Bank service charge = $75
Deduct: NSF check = $1,200
Cash balance per books = $12,225

Therefore, the correct answer is B ($16,500).

Zebb Company Developed the Following Reconciling Information in Preparing Its