In preparing its bank reconciliation at May 31, 2020, Kennedy Co. has the following information available: Balance per bank statement.......................................$78,000
Deposit in transit........................................................15,600
Outstanding cheques.................................................4,200
Note collected by bank in May...................................7,200

The correct balance of cash at May 31, 2020 is

Question

In preparing its bank reconciliation at May 31, 2020, Kennedy Co. has the following information available: Balance per bank statement.......................................$78,000
Deposit in transit........................................................15,600
Outstanding cheques.................................................4,200
Note collected by bank in May...................................7,200

The correct balance of cash at May 31, 2020 is

Quizplus · Accepted Answer

The correct balance of cash is calculated as: Balance per bank statement ($78,000) + Deposit in transit ($15,600) - Outstanding cheques ($4,200) = $89,400. The note collected by the bank is already included in the bank statement balance.

In Preparing Its Bank Reconciliation at May 31, 2020, Kennedy