Owen Company's unadjusted book balance at June 30 is $9,700.The company's bank statement reveals bank service charges of $45.Two credit memos are included in the bank statement: one for $900,which represents a collection that the bank made for Owen,and one for $50,which represents the amount of interest that Owen had earned on its interest-bearing account in June.What is the true cash balance?

Question

Quizplus · Accepted Answer

True cash balance = Unadjusted book balance of $9,700 - Service charge of $45 + Accounts Receivable Collection of $900 + Interest revenue of $50 = $10,605

Owen Company's Unadjusted Book Balance at June 30 Is $9,700