Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $25,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following:

Deposit in transit $2,850

Outstanding checks $1,215

Additionally, a $36 check written and recorded by the company correctly was recorded by the bank as a $63 deduction.

The adjusted cash balance per the bank records should be:

A.) $26,996

B.) $21,323

C.) $29,453

D.) $27,023

E.) $26,969

Question

Business

Taniyah Cameron

7 September, 19:35

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $25,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following:

Deposit in transit $2,850

Outstanding checks $1,215

Additionally, a $36 check written and recorded by the company correctly was recorded by the bank as a $63 deduction.

The adjusted cash balance per the bank records should be:

A.) $26,996

B.) $21,323

C.) $29,453

D.) $27,023

E.) $26,969

+1

Answers (1)

Know the Answer?

Nikhil Johnston · Answer 1

D.) $27,023

Explanation:

Bank statement: 25,361

deposit in transit 2,850

outstanding checks (1,215)

bank mistake:

63 - 36 = 27

Adjusted balance: 27,023

The company write a check, therefore is a decrease to the bank account balance.

The bank decrease for 63 dollar when it should decrease only for 36

Therefore it was subtracted from more than it should.

We need to increase cash by the difference.