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2 September, 15:10

Sahara Company's Cash account shows an ending balance of $850. The bank statement shows a $28 service charge and an NSF check for $100. A $240 deposit is in transit, and outstanding checks total $340. What is Sahara 's adjusted cash balance?

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  1. 2 September, 17:09
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    The adjusted cash balance amounts to $722

    Explanation:

    The adjusted cash balance is computed as:

    Adjusted cash balance = Ending balance of cash account - Service Charge - NSF check

    where

    Ending balance of cash account amounts to $850

    Service Charge amounts to $28

    NSF check amounts to $100

    Putting the values above:

    Adjusted cash balance = $850 - $28 - $100

    = $750 - $28

    = $722

    Note: Outstanding check and deposit in transit will be considered in cash balance.
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