Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check.Ryan's June bank statement shows $18,361 on deposit in the bank.Ryan's comparison of the bank statement to its cash account revealed the following: Additionally,a $29 check written and recorded by the company correctly was recorded by the bank as a $92 deduction.The adjusted cash balance per the bank records should be:

Question

Quizplus · Accepted Answer

To adjust the cash balance per the bank records, we need to add deposits in transit and deduct outstanding checks. From the given information, we can see that there is one outstanding check of $29, which means it has been recorded in the company's cash account but not yet cleared by the bank. Additionally, there is an error in recording the check for $29 by the bank, which has been deducted as $92 instead. Therefore, we need to add $29 to the bank's ending balance and deduct $92 from it. This gives us:

$18,361 (ending balance per bank statement) 
+ $29 (deposit in transit) 
- $92 (adjustment for error in bank's recording) 
= $18,298

So, the adjusted cash balance per the bank records is $18,298, which is option D.

Ryan Company Deposits All Cash Receipts on the Day They