The Roscoe Company's March 31, 2016 bank statement balance was $70,000. As of March 31, 2016, outstanding checks total $22,000 and deposits in transit total $15,000. What was the March 31, 2016 cash balance on Roscoe's books?

Question

Quizplus · Accepted Answer

To find the cash balance on Roscoe's books, we need to adjust the bank statement balance by subtracting outstanding checks and adding deposits in transit. Therefore:

Adjusted balance = bank statement balance - outstanding checks + deposits in transit
Adjusted balance = $70,000 - $22,000 + $15,000
Adjusted balance = $63,000

Therefore, the answer is A) $63,000.

The Roscoe Company's March 31, 2016 Bank Statement Balance Was