Delco Construction The following items relate to the company's March bank reconciliation:
$\begin{array}{ll}
\text { Bank statement balance } &\$ 29,600 \
\text { Unadjusted cash balance ac cording to company records } &? \
\text { Deposit in trensit } &2,200 \
\text { Outstanding checks } &3,100 \
\text { Bank service charges } &200 \
\text { Interest earned on the bank account } &100 \
\text { Customen's NSF check returned by the bank } &300
\end{array}$
-Refer to Delco Construction.What is the company's unadjusted cash balance in its accounting records at March 31st before the reconciliation was completed?

Question

Delco Construction The following items relate to the company's March bank reconciliation:
$\begin{array}{ll}
 \text { Bank statement balance } &\$ 29,600 \
 \text { Unadjusted cash balance ac cording to company records } &? \
 \text { Deposit in trensit } &2,200 \
 \text { Outstanding checks } &3,100 \
 \text { Bank service charges } &200 \
 \text { Interest earned on the bank account } &100 \
 \text { Customen's NSF check returned by the bank } &300
\end{array}$ 
-Refer to Delco Construction.What is the company's unadjusted cash balance in its accounting records at March 31st before the reconciliation was completed?

Quizplus · Accepted Answer

To find the unadjusted cash balance, we need to start with the bank statement balance and adjust for items that have not yet been recorded in the company's accounting records. Thus, we subtract the outstanding checks and add the deposit in transit to get the adjusted bank balance. Then, we add any interest earned from the bank and deduct any bank service charges. Finally, we subtract any NSF checks that were returned by the bank.

Adjusted bank balance = Bank statement balance - Outstanding checks + Deposit in transit
= $29,600 - $3,100 + $2,200
= $28,700

Unadjusted cash balance = Adjusted bank balance +/- any other adjustments
= $28,700 - $200 + $100 - $300
= $29,100

Therefore, the company's unadjusted cash balance in its accounting records at March 31st before the reconciliation was completed was $29,100. The answer is B.

Delco Construction the Following Items Relate to the Company's March