The following information relates to the company's November bank reconciliation:

-Refer to Dreammaker Kitchens. What is the company's adjusted cash balance on November 30th?

Question

The following information relates to the company's November bank reconciliation:
 
-Refer to Dreammaker Kitchens. What is the company's adjusted cash balance on November 30th?

Quizplus · Accepted Answer

The adjusted cash balance is calculated by adding the deposits in transit (which have not yet cleared the bank) and subtracting outstanding checks (which have not yet been cashed by recipients) to the ending balance on the bank statement. 
Adjusted cash balance = $8,800 + $1,000 - $200 - $1,000 = $9,600 
Therefore, the answer is B) $11,600

The Following Information Relates to the Company's November Bank Reconciliation