Thompson Company developed the following reconciling information in preparing its October bank reconciliation: $\begin{array}{ll}
\$ 17,000 & \text { Cash balance per bank, } 10 / 31 \
4,800 & \text { Note receivable collected by bank } \
6,500 & \text { Outstanding checks } \
3,000 & \text { Deposits-in-transit } \
50 & \text { Bank service charge } \
2,300 & \text { NSF check }
\end{array}$ Using the above information, determine the cash balance per books (before adjustments) for the Thompson Company.

Question

Quizplus · Accepted Answer

The cash balance per books (before adjustments) is $11,050. This is calculated by adding the deposits-in-transit ($3,000) to the cash balance per bank ($17,000) and then subtracting the outstanding checks ($6,500), the bank service charge ($50), and the NSF check ($2,300).

Thompson Company Developed the Following Reconciling Information in Preparing Its