Thompson Corporation gathered the following reconciling information in preparing its October bank reconciliation:
$\begin{array}{|l|r|}
\hline \text { Cash balance per bank, 10/31 } & \$ 17,000 \
\hline \text { Note receivable collected by bank } & 4,800 \
\hline \text { Outstanding checks } & 6,500 \
\hline \text { Deposits-in-transit } & 3,000 \
\hline \text { Bank service charge } & 50 \
\hline \text { NSF check } & 2,300 \
\hline
\end{array}$
Using the above information,determine the cash balance per books before adjustments for the Thompson Corporation.

Question

Thompson Corporation gathered the following reconciling information in preparing its October bank reconciliation: 
$\begin{array}{|l|r|}
\hline \text { Cash balance per bank, 10/31 } & \$ 17,000 \
\hline \text { Note receivable collected by bank } & 4,800 \
\hline \text { Outstanding checks } & 6,500 \
\hline \text { Deposits-in-transit } & 3,000 \
\hline \text { Bank service charge } & 50 \
\hline \text { NSF check } & 2,300 \
\hline
\end{array}$ 
Using the above information,determine the cash balance per books before adjustments for the Thompson Corporation.

Quizplus · Accepted Answer

The cash balance per books before adjustments is $11,050. This is calculated by adding the outstanding checks and the NSF check to the cash balance per bank, and then subtracting the note receivable collected by bank and the deposits-in-transit.

Thompson Corporation Gathered the Following Reconciling Information in Preparing Its