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7 June, 20:39

The April 30 bank statement for Trimble Corporation shows an ending balance of $37,169. The unadjusted cash account balance was $30,950. The accountant for Trimble gathered the following information: There was a deposit in transit for $4,778. The bank statement reports a service charge of $104. A credit memo included in the bank statement shows interest earned of $455. Outstanding checks totaled $12,316. The bank statement included a $1,670 NSF check deposited in April. What is the true cash balance as of April 30

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  1. 7 June, 22:39
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    The true cash balance as of April 30 is $29,631

    Explanation:

    Perform a Bank Reconciliation to determine the true cash balance as of April 30.

    The first step is to update the Cash Book Bank Balance as follows:

    Debit:

    Balance as per Cash Book (unadjusted) $30,950

    Interest Earned $455

    Totals $31,405

    Credit:

    Service Charge $104

    NSF Check $1,670

    Balance as per Updated Cash Book $29,631

    Totals $31,405

    The Next Step is prepare a Bank Reconciliation Statement as of April 30.

    Bank Reconciliation Statement as of April 30

    Balance at bank as per updated Cash Book $29,631

    Add Unpresented Cheques $12,316

    Less Lodgements not yet credited ($4,778)

    Balance as per bank statement $37,169

    Conclusion:

    The true cash balance as of April 30 is $29,631
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