Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check.Ryan's June bank statement shows $18,361 on deposit in the bank.Ryan's comparison of the bank statement to its cash account revealed the following: Additionally,a $29 check correctly written and recorded by the company was recorded by the bank as a $92 deduction.
The adjusted cash balance per the bank records should be:

Question

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check.Ryan's June bank statement shows $18,361 on deposit in the bank.Ryan's comparison of the bank statement to its cash account revealed the following:  Additionally,a $29 check correctly written and recorded by the company was recorded by the bank as a $92 deduction.
The adjusted cash balance per the bank records should be:

Quizplus · Accepted Answer

Starting balance per bank statement: $18,361
Add: Deposit in transit: $4,650
Adjusted bank balance: $23,011

Starting cash balance per company records: $20,126
Less: Outstanding checks: $497
Adjusted cash balance: $19,629

The bank error of recording the $29 check as a $92 deduction does not affect the adjusted bank balance. We need to reconcile the adjusted cash balance to the adjusted bank balance.

Adjusted cash balance: $19,629
Adjusted bank balance: $23,011

Adjustments:
Add: Bank error (subtract): $63

Adjusted cash balance per bank records: $19,037 (Option D)

Ryan Company Deposits All Cash Receipts on the Day They