Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $60,209. Easton's June bank statement shows $58,349 on deposit in the bank. Determine the adjusted cash balance using the following information: $\begin{array}{|l|r|}
\hline \text { Deposit in transit } & \$ 3,800 \
\hline \text { Outstanding checks } & \$ 1,925 \
\hline \text { Check printing fee, not yet recorded by company } & \$ 15 \
\hline \text { Interest earned on account, not yet recorded by the company } & \$ 30\\hline
\end{array}$ The adjusted cash balance should be:

Question

Quizplus · Accepted Answer

The adjusted cash balance is calculated by taking the bank statement balance, adding deposits in transit, subtracting outstanding checks, and adjusting for any unrecorded transactions. Starting with the bank balance of $58,349, add the deposit in transit of $3,800, subtract the outstanding checks of $1,925, and adjust for the check printing fee of $15 and interest earned of $30. This results in an adjusted cash balance of $60,224.

Easton Co Deposits All Cash Receipts on the Day They Are