The bank statement reported an ending balance of $58,480 after deducting $880 in service charges and an addition of $18,000 for a note collected by the bank on the Bandit Company's behalf. The company books reported an ending balance of $38,760, and determined that deposits in transit equal $22,400 and outstanding checks equal $25,000.
What is the adjusted cash balance?

Question

Quizplus · Accepted Answer

$38,760 balance per books - $880 service charge + $18,000 note collected by the bank
= $55,880 adjusted cash balance.
$58,480 balance per bank statement + $22,400 deposits in transit - $25,000 outstanding checks
= $55,880.

The Bank Statement Reported an Ending Balance of $58,480 After