Marjorie Company's cash balance per the books at the end of the month was $6,500.After comparing the company's records with the monthly bank statement,Marjorie's accountant identified the following reconciling items: outstanding checks,$800; deposits in transit,$700; bank service charge,$30; and NSF check,$500.The bank collection of a note receivable was $1,000 plus interest of $100.There also was an EFT payment of $100.What is the adjusted book balance at the end of the month?

Question

Quizplus · Accepted Answer

Starting with the company's cash balance per the books:
$6,500
Add deposits in transit:
+$700
Subtract outstanding checks:
-$800
Adjusted book balance:
$6,400
Then, add the bank collection of the note receivable and interest:
+$1,100
Subtract the NSF check:
-$500
Subtract the bank service charge:
-$30
Subtract the EFT payment:
-$100
Final adjusted book balance:
$6,970

Marjorie Company's Cash Balance Per the Books at the End