Information to calculate the adjusted cash balance for Everest Climbing Gear is as follows: Cash balance per general ledger $4,000
Customer's cheque returned--NSF 150
Bank service charges 80
Deposits in transit 1,000
Outstanding cheques 1,400
Customer's note collected by bank 1,290
A) $4,660
B) $4,860
C) $5,060
D) $5,260

Question

Quizplus · Accepted Answer

Starting cash balance per general ledger: $4,000 
Add deposits in transit: +$1,000 
Subtract outstanding cheques: -$1,400 
Subtract bank service charges: -$80 
Subtract returned cheque: -$150 
Add customer's note collected by the bank: +$1,290 
Adjusted cash balance: $5,060.

Information to Calculate the Adjusted Cash Balance for Everest Climbing