Before reconciling to its bank statement, Lauren Cosmetics Corporation's general ledger had a month-end balance in the cash account of $5,250. The bank reconciliation for the month contained the following items: Given the above information, what adjusted cash balance should Lauren report at month-end?

Question

Before reconciling to its bank statement, Lauren Cosmetics Corporation's general ledger had a month-end balance in the cash account of $5,250. The bank reconciliation for the month contained the following items:  Given the above information, what adjusted cash balance should Lauren report at month-end?

Quizplus · Accepted Answer

Starting cash balance = $5,250

Add: 
Deposit in transit = $1,430 
Interest earned = $30

Subtract: 
Outstanding checks = $550 
Service charge = $40 
NSF check = $60

Adjusted cash balance = $5,160

Before Reconciling to Its Bank Statement, Lauren Cosmetics Corporation's General