A company's unadjusted bank balance is $3,000. Outstanding checks amount to $500 and deposits in transit total $300. Based on this information alone, what is the company's adjusted cash balance for the purpose of preparing a bank reconciliation?

Question

Quizplus · Accepted Answer

To calculate the adjusted cash balance, we need to add deposits in transit and subtract outstanding checks from the unadjusted bank balance.

Adjusted Cash Balance = Unadjusted Bank Balance + Deposits in Transit - Outstanding Checks

Adjusted Cash Balance = $3,000 + $300 - $500 
Adjusted Cash Balance = $2,800

Therefore, the correct answer is C) $2,800.

A Company's Unadjusted Bank Balance Is $3,000