Dent Company's unadjusted bank balance at March 31, 2014 is $3,000. The bank reconciliation revealed outstanding checks amounting to $500 and deposits in transit of $300. Based on this information, Dent's true cash balance is:

Question

Quizplus · Accepted Answer

The unadjusted bank balance is $3,000.
Outstanding checks are subtracted from the unadjusted bank balance:
$3,000 - $500 = $2,500
Deposits in transit are added to the unadjusted balance:
$2,500 + $300 = $2,800
Therefore, the true cash balance for Dent Company is $2,800.

Dent Company's Unadjusted Bank Balance at March 31, 2014 Is