On June 30,a company had $1,924 in its cash account according to its general ledger.This included a deposit of $174 that was in transit on June 30th.The June 30th bank statement contained the following information: $\begin{array}{ll}
\text {Bank statement balance} &\$ 2,178 \
\text {Bank service charge} &14 \
\text {Collection of notesreceivable} &136\
\text { NSF check } &32
\end{array}$
Assuming outstanding checks of $338,what is the company's adjusted cash balance at June 30th?

Question

On June 30,a company had $1,924 in its cash account according to its general ledger.This included a deposit of $174 that was in transit on June 30th.The June 30th bank statement contained the following information: $\begin{array}{ll}
 \text {Bank statement balance} &\$ 2,178 \
 \text {Bank service charge} &14 \
 \text {Collection of notesreceivable} &136\
 \text { NSF check } &32
\end{array}$ 
Assuming outstanding checks of $338,what is the company's adjusted cash balance at June 30th?

Quizplus · Accepted Answer

The adjusted cash balance is the bank statement balance plus any deposits in transit and minus any outstanding checks. In this case, the bank statement balance is $2,178, there is a deposit in transit of $174, and there are outstanding checks of $338. Therefore, the adjusted cash balance is $2,178 + $174 - $338 = $2,014.

On June 30,a Company Had $1,924 in Its Cash Account