Assume the following facts for Erich Company: the month-end bank statement shows a balance of $27,200; outstanding checks totaled $2,000; a deposit of $8,000 is in transit at month-end; and a check for $400 was erroneously charged against the account by the bank. What is the correct cash balance at the end of the month?

Question

Quizplus · Accepted Answer

The correct cash balance is $33,600. This is calculated by adding the bank statement balance ($27,200) to the outstanding checks ($2,000) and the deposit in transit ($8,000), and then subtracting the erroneously charged check ($400).

Assume the Following Facts for Erich Company: the Month-End Bank