A bank statement shows a balance of $8,445 at June 30. A bank reconciliation is prepared and includes outstanding checks of $2,790, deposits in transit of $1,350, and a bank service charge of $30. Among the paid checks returned by the bank was check no. 900 in the amount of $600, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:

Question

Quizplus · Accepted Answer

Starting balance: $8,445

Add: Deposits in transit: $1,350

Adjusted balance: $9,795

Deduct: Outstanding checks: $2,790

Adjusted balance: $7,005

Deduct: Bank service charge: $30

Adjusted balance: $6,975

Add: Increase in balance due to corrected check amount: $540 ($600 - $60)

Adjusted balance: $7,515

Therefore, the adjusted cash balance at June 30 is $7,005 (Option C).

A Bank Statement Shows a Balance of $8,445 at June