The following information is needed to reconcile the cash balance for Woods Paper Products. • A deposit of $5 794.62 is in transit.
• Outstanding cheques total $1 533.25.
• The book balance is $5 695.62.
• The bookkeeper recorded a $1 524.00 cheque as $15 240 in payment of the current month's rent.
• The bank balance at 28 February 2014 was $16 500.25.
• A deposit of $300 was credited by the bank for $3 000.
• A customer's cheque for $1 280 was returned for nonsufficient funds.
• The bank service charge is $70.
What was the adjusted book balance?

Question

Quizplus · Accepted Answer

The adjusted book balance is $18,061.62. This is calculated by adding the deposit in transit ($5,794.62), subtracting the outstanding checks ($1,533.25), correcting the error in recording the rent payment ($15,240 - $1,524 = $13,716), adding the bank error ($3,000 - $300 = $2,700), subtracting the NSF check ($1,280), and subtracting the bank service charge ($70).

The Following Information Is Needed to Reconcile the Cash Balance