In preparing its bank reconciliation for the month of April 2018, Delano, Inc. has available the following information. $\begin{array}{lr}
\text { Balance per bank statement, 4/30/18 } & \$ 78,600 \
\text { NSF check returned with 4/30/18 bank statement } & 940 \
\text { Deposits in transit, } 4 / 30 / 18 & 10,000 \
\text { Outstanding checks, } 4 / 30 / 18 & 10,400 \
\text { Bank service charges for April } & 60
\end{array}$ What should be the adjusted cash balance at April 30, 2018?
A) $77,260.
B) $77,600.
C) $78,020.
D) $78,200.

Question

Quizplus · Accepted Answer

The adjusted cash balance is calculated as follows: Balance per bank statement ($78,600) + Deposits in transit ($10,000) - Outstanding checks ($10,400) = $78,200. The NSF check and bank service charges affect the book balance, not the bank balance.

In Preparing Its Bank Reconciliation for the Month of April