Calculate the adjusted cash balance per books of ABC Co. given the following information. ItemAmountBalance per bank statement$10,005Balance per cash account book balance9,500Deposit in transit300Interest earned on the depositor's balance55NSF check100Outstanding checks850Multiple choice question.$9,510$8,550$9,455$10,305
Question
Calculate the adjusted cash balance per books of ABC Co. given the following information. ItemAmountBalance per bank statement9,5109,455$10,305
Solution
To calculate the adjusted cash balance per books, we need to start with the balance per cash account book balance and then adjust for any items that affect the book balance but not the bank balance.
Here are the steps:
- Start with the balance per cash account book balance: $9,500
- Add any amounts that increase the book balance. In this case, we add the interest earned on the depositor's balance: 55 = $9,555
- Subtract any amounts that decrease the book balance. In this case, we subtract the NSF check: 100 = $9,455
So, the adjusted cash balance per books of ABC Co. is $9,455.
Similar Questions
Calculate the adjusted cash balance per the books of XYZ Co. given the following information. ItemAmountBalance per bank statement$600Balance per cash account book balance710Deposit in transit200Note collected by the bank on behalf of the depositor80Monthly bank charges40Outstanding checks50Multiple choice question.$990$630$750$950
After posting the required adjusting journal entries from the bank reconciliation below, show what the balance of the Cash account in ABC Co.'s general ledger will be by selecting the correct answer below. Bank balance$1,005Book balance$1,250Add: Deposit in transit300Add: Interest earned50Less: Outstanding checks185Less: NSF check - J. Roberts180Multiple choice question.Cash will have a balance of $1,250.Cash will have a balance of $1,120.Cash will have a balance of $1,005.Cash will have a balance of $1,300.
Select all that applyThe bank reconciliation of ABC Co. is provided below. Demonstrate the required adjusting entries needed to update the Cash account in the general ledger by selecting the correct entries below. Bank balance$1,005Book balance$1,250Add: Deposit in transit300Add: Interest earned50Less: Outstanding checks185Less: NSF check - J. Roberts180Multiple select question.Debit NSF Expense $180 and credit Cash $180.Debit Interest Revenue $50 and credit Cash $50.Debit Cash $50 and credit Interest Revenue $50.Debit Cash $300 and credit Revenues $300.Debit Accounts Receivable $180 and credit Cash $180.
Identify the bank reconciliation items that would require adjustments to the book balance.Multiple select question.Interest earnedDeposits in transitCollection of note by bankBank chargesOutstanding checksNSF check
Based on the following information, how much is the correct cash in bank assuming the cash balance per book is P500,000? NSF check 100,000Note collection 200,000Deposit in transit 30,000Group of answer choices730,000700,000800,000600,000
Upgrade your grade with Knowee
Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.