Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation) ?

Question

Business

Zackery

14 November, 07:34

Egrane, Inc.'s monthly bank statement showed the ending balance of cash of $14,800. The bank reconciliation for the period showed an adjustment for a deposit in transit of $1,200, outstanding checks of $1,600, a NSF check of $560, bank service charges of $24 and the EFT from a customer in payment of the customer's account of $1,200. What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation) ?

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Answers (1)

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Mireya · Answer 1

The cash balance on the Egrane's books is $14,400

Explanation:

Up to date ending cash balance = Ending bank statement balance + Deposits in transit - Outstanding checks

Up to date ending cash balance = $14,800 + $1,200 - $1,600

Up to date ending cash balance = $14,400