Gentech Corp.prepared a bank reconciliation as of June 30,2017.The following items were identified: ?
$$\begin{array} { l r }
\text { Gentech's bank balance } & \$ 14,300 \
\text { Deposits in transit } & 1,000 \
\text { Outstanding checks } & 1,300 \
\text { Bank service charge } & 50 \
\text { Customer's NSF check returned by the bank } & 150
\end{array}$$ Gentech's adjusted cash balance at June 30,2017 is
A)$13,800.
B)$14,100.
C)$14,000.
D)$14,300.

Question

Gentech Corp.prepared a bank reconciliation as of June 30,2017.The following items were identified: ?
$$\begin{array} { l r } 
\text { Gentech's bank balance } & \$ 14,300 \
\text { Deposits in transit } & 1,000 \
\text { Outstanding checks } & 1,300 \
\text { Bank service charge } & 50 \
\text { Customer's NSF check returned by the bank } & 150
\end{array}$$ Gentech's adjusted cash balance at June 30,2017 is
A)$13,800.
B)$14,100.
C)$14,000.
D)$14,300.

Quizplus · Accepted Answer

The adjusted cash balance is calculated as: Bank balance ($14,300) + Deposits in transit ($1,000) - Outstanding checks ($1,300) = $14,000. The bank service charge and NSF check affect the book balance, not the bank balance.

Gentech Corp Gentech's Adjusted Cash Balance at June 30,2017 Is A)$13,800

Gentech Corp Gentech's Adjusted Cash Balance at June 30,2017 Is
A)$13,800