The August 31 bank statement of Mervin Inc.showed a balance of $113,000.Deducted in arriving at this amount was a customer's NSF check for $2,400 that had been returned.Mervin had received no prior notice concerning this check.In addition to the bank statement,other records showed there were deposits in transit totaling $17,200 and that outstanding checks totaled $10,800.What is the cash balance per books at August 31 (prior to adjustments)?

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The cash balance per books at August 31 (prior to adjustments) is $121,800. This is calculated by adding the bank statement balance of $113,000 to the deposits in transit of $17,200 and subtracting the outstanding checks of $10,800.

The August 31 Bank Statement of Mervin Inc