The bank statement reported an ending balance of $43,860 after deducting $660 in service charges and an addition of $13,500 for a note collected by the bank on the Cherokee Company's behalf. The company books reported an ending balance of $29,070, and determined that deposits in transit equal $16,800 and outstanding checks equal $18,750.
What is the adjusted cash balance?

Question

Quizplus · Accepted Answer

$29,070 balance per books - $660 service charge + $13,500 note collected by the bank
= $41,910 adjusted cash balance.
$43,860 balance per bank statement + $16,800 deposits in transit - $18,750 outstanding checks
= $41,910.

The Bank Statement Reported an Ending Balance of $43,860 After