The cash account shows a balance of $55,000 before reconciliation. The bank statement does not include a deposit of $2,300 made on the last day of the month. The bank statement shows a collection by the bank of $940 and a customer's check for $320 was returned because it was NSF. A customer's check for $450 was recorded on the books as $540, and a check written for $79 was recorded as $97. The correct balance in the cash account was

Question

Quizplus · Accepted Answer

The correct balance is calculated by adjusting the book balance for the deposit in transit (+$2,300), bank collection (+$940), NSF check (-$320), error in recording the customer's check (+$90), and error in recording the written check (+$18). The adjusted balance is $55,000 + $2,300 + $940 - $320 + $90 + $18 = $55,548.

The Cash Account Shows a Balance of $55,000 Before Reconciliation