Fluffy Pet Grooming deposits all cash receipts on the day when they are received and all cash payments are made by check. At the close of business on June 30, its Cash account shows a $14,811, debit balance. Fluffy Pet Grooming's June 30 bank statement shows $14,472 on deposit in the bank. Prepare a bank reconciliation for Fluffy Pet Grooming using the following information
a. Outstanding checks as of June 30 total $2,261.
b. The June 30 bank statement included a $75 debit memorandum for bank services.
c. Check No. 919, listed with the canceled checks, was correctly drawn for $789 in payment of a utility bill on June 15. Fluffy Pet Grooming mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $798.
d. The June 30 cash receipts of $2,534 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
What is the adjusted bank balance?

Question

Fluffy Pet Grooming deposits all cash receipts on the day when they are received and all cash payments are made by check. At the close of business on June 30, its Cash account shows a $14,811, debit balance. Fluffy Pet Grooming's June 30 bank statement shows $14,472 on deposit in the bank. Prepare a bank reconciliation for Fluffy Pet Grooming using the following information 
a. Outstanding checks as of June 30 total $2,261.
b. The June 30 bank statement included a $75 debit memorandum for bank services.
c. Check No. 919, listed with the canceled checks, was correctly drawn for $789 in payment of a utility bill on June 15. Fluffy Pet Grooming mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $798.
d. The June 30 cash receipts of $2,534 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
What is the adjusted bank balance?

Quizplus · Accepted Answer

Adjusted Bank Balance:
Balance per bank statement: $14,472
Add: Deposits in transit: $4,554
Adjusted Bank Balance: $19,026

Adjusted Book Balance:
Balance per books: $14,811
Less: Outstanding checks: $2,596
Less: Bank service charge: $117
Adjusted Book Balance: $12,098

The adjusted bank balance is the same as the balance per books, so the answer is B) $14,745.

Fluffy Pet Grooming Deposits All Cash Receipts on the Day