In preparing its bank reconciliation for the month of April 2016 Sells Inc. has available the following information. $\begin{array}{lr}
\text { Balance per bank statement, } 4 / 30 / 16 & \$ 40,290 \
\text { NSF check returned with } 4 / 30 / 16 \text { bank statement } & 1,450 \
\text { Deposits in transit, } 4 / 30 / 16 & 10,200 \
\text { Outstanding checks, } 4 / 30 / 16 & 15,060 \
\text { Bank service charges for April } & 60
\end{array}$ What should be the adjusted cash balance at April 30 2016?
A) $33920.
B) $33980.
C) $35370.
D) $35430.

Question

Quizplus · Accepted Answer

The adjusted cash balance is calculated as: Balance per bank statement ($40,290) + Deposits in transit ($10,200) - Outstanding checks ($15,060) = $35,430. The NSF check and bank service charges are adjustments to the book balance, not the bank balance.

In Preparing Its Bank Reconciliation for the Month of April