Duke Company's unadjusted bank balance at March 31 is $5,500. The bank reconciliation revealed outstanding checks amounting to $800 and deposits in transit of $550. What is the true cash balance?

Question

Quizplus · Accepted Answer

The true cash balance is calculated by adjusting the unadjusted bank balance for outstanding checks and deposits in transit. The formula is: True Cash Balance = Unadjusted Bank Balance - Outstanding Checks + Deposits in Transit. Therefore, $5,500 - $800 + $550 = $5,250.

Duke Company's Unadjusted Bank Balance at March 31 Is $5,500