In the process of reconciling its bank statement for April,Donahue Enterprises' accountant compiles the following information:
$$\begin{array} { | l | r | }
\hline \text { Cash balance per company books on April 30 } & \$ 6,275 \
\hline \text { Deposits in transit at month-end } & \$ 1,300 \
\hline \text { Outstanding checks at month-end } & \$ 620 \
\hline \text { Bank charge for printing new checks } & \$ 45 \
\hline \text { Note receivable and interest collected by bank on Donahue's behalf } & \$ 770 \
\hline \begin{array} { l }
\text { A check paid to Donahue during the month by a customer is returned by } \
\text { the bank as NSF }
\end{array} & \$ 480 \
\hline
\end{array}$$
The adjusted cash balance per the books on April 30 is:

Question

In the process of reconciling its bank statement for April,Donahue Enterprises' accountant compiles the following information:
$$\begin{array} { | l | r | } 
\hline \text { Cash balance per company books on April 30 } & \$ 6,275 \
\hline \text { Deposits in transit at month-end } & \$ 1,300 \
\hline \text { Outstanding checks at month-end } & \$ 620 \
\hline \text { Bank charge for printing new checks } & \$ 45 \
\hline \text { Note receivable and interest collected by bank on Donahue's behalf } & \$ 770 \
\hline \begin{array} { l } 
\text { A check paid to Donahue during the month by a customer is returned by } \
\text { the bank as NSF }
\end{array} & \$ 480 \
\hline
\end{array}$$
The adjusted cash balance per the books on April 30 is:

Quizplus · Accepted Answer

The adjusted cash balance per the books on April 30 is calculated by starting with the cash balance per company books, then adjusting for items that affect the book balance. The calculation is as follows: Start with the cash balance per books of $6,275. Subtract the bank charge for printing new checks ($45) and the NSF check ($480). Add the note receivable and interest collected by the bank ($770). The deposits in transit and outstanding checks affect the bank statement balance, not the book balance, so they are not included in this calculation. Therefore, the adjusted cash balance is $6,275 - $45 - $480 + $770 = $6,520.

In the Process of Reconciling Its Bank Statement for April,Donahue