A bank statement shows a balance of $8,695 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,045, deposits in transit of $1,370, and a bank service charge of $20. Among the paid checks returned by the bank was check no. 900 in the amount of $490, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:

Question

Business

Parker House

16 November, 11:37

A bank statement shows a balance of $8,695 at June 30. The bank reconciliation is prepared and includes outstanding checks of $2,045, deposits in transit of $1,370, and a bank service charge of $20. Among the paid checks returned by the bank was check no. 900 in the amount of $490, which the company had erroneously recorded in the accounting records as $60. The "adjusted cash balance" at June 30 is:

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Erica Decker · Answer 1

The adjusted cash balance at June 30 is $7,980

Explanation:

In order to calculate the adjusted cash balance at June 30 we would have to make the following calculation:

adjusted cash balance at June 30=Balance as per Bank Statement+Deposit in transit-Outstanding checks+bank Service charge-returned paid check no. 900

adjusted cash balance at June 30=$8,695+$1,370-$2,045+$20-$60

adjusted cash balance at June 30=$7,980

The adjusted cash balance at June 30 is $7,980