The April 30 bank statement for Trimble Corporation shows an ending balance of $34,351.The unadjusted cash account balance was $28,250.The accountant for Trimble gathered the following information:
There was a deposit in transit for $4,240.
The bank statement reports a service charge of $39.
A credit memo included in the bank statement shows interest earned of $95.
Outstanding checks totaled $10,935.
The bank statement included a $650 NSF check deposited in April.
What is the true cash balance as of April 30?

Question

Quizplus · Accepted Answer

True cash balance = Unadjusted bank balance of $34,351 + Deposits in transit of $4,240 - Outstanding checks of $10,935 = $27,656.
Alternatively:
True cash balance = Unadjusted book balance of $28,250 - Service charge of $39 + Interest revenue of $95 - NSF check of $650 = $27,656

The April 30 Bank Statement for Trimble Corporation Shows an Ending