The August 31 bank statement of Kelvin Inc. showed a balance of $113,000. Deducted in arriving at this amount was a customer's NSF check for $2,400 that had been returned. Kelvin had received no prior notice concerning this check. In addition to the bank statement, other records showed there were deposits in transit totaling $17,200 and that outstanding checks totaled $10,800. What is the cash balance per books at August 31 (prior to adjustments)?

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The cash balance per books at August 31 (prior to adjustments) is $121,800. This is calculated by adding the bank statement balance ($113,000) to the deposits in transit ($17,200) and subtracting the outstanding checks ($10,800).

The August 31 Bank Statement of Kelvin Inc