In preparing its bank reconciliation for the month of April 2010, Rizzo, Inc.has available the following information. What should be the correct balance of cash at April 30, 2010?

Question

In preparing its bank reconciliation for the month of April 2010, Rizzo, Inc.has available the following information.  What should be the correct balance of cash at April 30, 2010?

Quizplus · Accepted Answer

Starting cash balance per books = $50,400 
Add: Deposits in transit = $4,500 
Adjusted cash balance = $54,900

Deduct: Outstanding checks 
Check #1112 = $1,520 
Check #1115 = $1,100 
Check #1118 = $900 
Adjusted cash balance - Outstanding checks = $51,280

Therefore, the correct balance of cash at April 30, 2010, should be $51,280.

In Preparing Its Bank Reconciliation for the Month of April