Border Company's Cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?
$$\begin{array} { l r }
\text { Bank statement balance } & \$ 1,089 \
\text { NSF check } & 16 \
\text { Bank service charge } & 7 \
\text { Coll ection of notes receivable } & 68
\end{array}$$

Question

Border Company's Cash account had a balance of $962 on August 31.This included a bank deposit of $87 that was in transit.The August 31 bank statement contained the following information: Border also had checks outstanding of $169.What is Border's adjusted cash balance at August 31?
$$\begin{array} { l r } 
\text { Bank statement balance } & \$ 1,089 \
\text { NSF check } & 16 \
\text { Bank service charge } & 7 \
\text { Coll ection of notes receivable } & 68
\end{array}$$

Quizplus · Accepted Answer

The adjusted cash balance at August 31 can be determined by adding the balance in the Cash account (including the bank deposit in transit) to any deposits that have been made since Aug 31 and then subtracting any outstanding checks.

Adjusted cash balance = $962 (balance on Aug 31) + $87 (bank deposit in transit) - $169 (outstanding checks)

Therefore,

Adjusted cash balance = $880 + $87 - $169 = $998

So, the nearest answer in the options is C, which is $1007, and this is the correct answer.

Border Company's Cash Account Had a Balance of $962 on August