In preparing its bank reconciliation for the month of April 2020, Henke Inc. has the following information available: $\begin{array}{llcc}
\text { Balance per bank statement, $ 4 / 30 / 20 $ } &&\$34,140 \
\text {NSF cheque returned with $ 4 / 30 / 20 $ bank statement }& &450\
\text {Deposits in transit, $ 4 / 30 / 20 $ } &&5,000\
\text {Outstanding cheques, 4/30/20 } &&5,200\
\text { Bank service charges for April } &&20\

\end{array}$
What should be the correct balance of cash at April 30, 2020?

Question

In preparing its bank reconciliation for the month of April 2020, Henke Inc. has the following information available: $\begin{array}{llcc}
  \text { Balance per bank statement, \( 4 / 30 / 20 $  } &&\$34,140  \
 \text {NSF cheque returned with $ 4 / 30 / 20 $ bank statement  }& &450\
 \text {Deposits in transit, $ 4 / 30 / 20 $  } &&5,000\
 \text {Outstanding cheques, 4/30/20  } &&5,200\
 \text { Bank service charges for April } &&20\

\end{array}\)
 What should be the correct balance of cash at April 30, 2020?

Quizplus · Accepted Answer

Starting with the balance per bank statement of $34,140, we add the deposits in transit of $5,000, resulting in a corrected balance of $39,140. We then subtract the outstanding cheques of $5,200 and bank service charges of $20, resulting in an adjusted balance of $33,920. However, there was an NSF cheque returned for $450, which means we need to subtract that amount as well. 
$33,920 - $450 = $33,470 
Therefore, the correct balance of cash at April 30, 2020 is $33,470.

In Preparing Its Bank Reconciliation for the Month of April