At the end of the month, a company's Cash account indicates a balance of $9,820. Upon receiving a bank statement, the following amounts are used in the bank reconciliation: deposit in transit, $2,400; outstanding checks, $926; bank service charge, $28; NSF check, $425; proceeds of a customer's note collected by the bank, $4,097. Given this information, what is the corrected Cash balance?

Question

Quizplus · Accepted Answer

The corrected Cash balance is $13,464. This is calculated by adding the deposit in transit ($2,400) to the beginning Cash balance ($9,820), and then subtracting the outstanding checks ($926), bank service charge ($28), and NSF check ($425). The proceeds of the customer's note collected by the bank ($4,097) is not included in the calculation because it has already been deposited into the Cash account.

At the End of the Month, a Company's Cash Account