The April 30,2012 bank statement for Tuttle Corporation shows an ending balance of $34,451.The unadjusted cash account balance was $28,350.The accountant for Tuttle gathered the following information: 1.April's deposit in transit was $4,240
2)The bank statement reports a service charge of $39
3)A credit memo included in the bank statement shows interest earned of $95
4)Outstanding checks totaled $10,935
5)The bank statement included a customer's $650 NSF check deposited in April
What is the true cash balance as of April 30,2012?

Question

Quizplus · Accepted Answer

The true cash balance is calculated by adjusting the bank statement balance and the unadjusted cash account balance. Starting with the bank statement balance of $34,451, subtract the outstanding checks of $10,935 and add the deposit in transit of $4,240 to get $27,756. The unadjusted cash account balance is adjusted by subtracting the service charge of $39 and the NSF check of $650, and adding the interest earned of $95, which also results in $27,756.

The April 30,2012 Bank Statement for Tuttle Corporation Shows an Ending