Ramirez Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2016, its Cash account shows an $14,445 debit balance. Ramirez Clinic's June 30 bank statement shows $13,402 on deposit in the bank. The following information is also available: The adjusted cash balance per the books on June 30 is
A)$14,461
B)$14,429
C)$17,285
D)$12,375
E)$16,258

Question

Ramirez Clinic deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on June 30, 2016, its Cash account shows an $14,445 debit balance. Ramirez Clinic's June 30 bank statement shows $13,402 on deposit in the bank. The following information is also available:  The adjusted cash balance per the books on June 30 is
A)$14,461 
B)$14,429 
C)$17,285 
D)$12,375 
E)$16,258

Quizplus · Accepted Answer

The adjusted cash balance per the books on June 30 is calculated as follows:
Cash balance per books = $14,445 (given)
Add: Deposits in transit = $2,189 (total deposits of $15,283 - deposits of $13,094 recorded on books)
Less: Outstanding checks = $2,232 (total outstanding checks of $15,657 - checks of $13,425 recorded on books)
Adjusted cash balance per the books on June 30 = $14,445 + $2,189 - $2,232 = $14,402.
Therefore, the correct option is B.

Ramirez Clinic Deposits All Cash Receipts on the Day When