Gentech Corp.prepared a bank reconciliation as of June 30, 2014.The following items were identified:

Gentech's adjusted cash balance at June 30, 2014 is

Question

Gentech Corp.prepared a bank reconciliation as of June 30, 2014.The following items were identified:

Gentech's adjusted cash balance at June 30, 2014 is

Quizplus · Accepted Answer

To calculate the adjusted cash balance, we first start with the bank balance per the bank statement. In this case, it is given as $13,500. Then, we add any deposits in transit, which are deposits that have been made but have not yet been recorded by the bank. In this case, the deposit in transit is $1,000. So, the adjusted bank balance is $13,500 + $1,000 = $14,500.

Next, we subtract any outstanding checks, which are checks that have been written but have not yet been cashed or recorded by the bank. In this case, the outstanding checks are $500. So, the adjusted bank balance is $14,500 - $500 = $14,000.

Finally, we compare this adjusted bank balance to the company's cash balance per its records. In this case, the cash balance per the company's records is given as $14,000. Since these two balances match, the correct answer is (C) $14,000.