Speed Racer Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{lr}
\text { Cash balance per bank, } 9 / 30 & \$ 27,000 \
\text { Note receivable collected by bank } & 12,800 \
\text { Outstanding checks } & 14,000 \
\text { Deposits in transit } & 6,000 \
\text { Bank service charge } & 350 \
\text { NSF check } & 2,900
\end{array}$
Determine the cash balance per books (before adjustments) for Speed Racer Company.

Question

Speed Racer Company developed the following reconciling information in preparing its September bank reconciliation: $\begin{array}{lr}
\text { Cash balance per bank, } 9 / 30 & \$ 27,000 \
\text { Note receivable collected by bank } & 12,800 \
\text { Outstanding checks } & 14,000 \
\text { Deposits in transit } & 6,000 \
\text { Bank service charge } & 350 \
\text { NSF check } & 2,900
\end{array}$ 
Determine the cash balance per books (before adjustments) for Speed Racer Company.

Quizplus · Accepted Answer

According to the reconciling information, the adjusted cash balance per books is $16,500. To determine the cash balance per books before adjustments, we need to subtract the adjustments from the adjusted cash balance. Therefore, cash balance per books (before adjustments) = adjusted cash balance - adjustments = $16,500 - $7,050 = $9,450.

Speed Racer Company Developed the Following Reconciling Information in Preparing