The accountant for Casa Corp.was preparing a bank reconciliation as of February 28, 2014.The following items were identified:

There was an error in recording a customer's check as the check was recorded by Casa as $110, but the correct amount of $101 was recorded by the bank.
Casa's adjusted cash balance at February 28, 2014 is

Question

The accountant for Casa Corp.was preparing a bank reconciliation as of February 28, 2014.The following items were identified:

There was an error in recording a customer's check as the check was recorded by Casa as $110, but the correct amount of $101 was recorded by the bank.
Casa's adjusted cash balance at February 28, 2014 is

Quizplus · Accepted Answer

To adjust for the error, Casa's cash balance must be decreased by the amount of the error, which is $9 ($110 recorded by Casa - $101 recorded by the bank). Therefore, the adjusted cash balance is $35,640 ($35,649 ending balance per bank statement - $5,295 outstanding checks + $5,286 deposits in transit - $9 correction of recording error).

The Accountant for Casa Corp