Answer:
The correct option is D. 3,000
Step-by-step explanation:
- On the bank statement, compare the issued checks and deposits shown on the statement to identify uncleared checks and deposits in transit
Step 1 : Using the cash balance shown on the bank statement, add back any deposits in transit. : 2000 + 2500 = $4500
Step 2 : Deduct any outstanding checks : 4500 - 1500 = $3000
This will provide the adjusted bank cash balance.
- Next, use the company’s ending cash balance, add any interest earned and notes receivable amount.
Step 3 : Deduct any bank service fees, penalties, and NSF checks. This will arrive at the adjusted company cash balance : 3250 - (205 + 45) = $3000
After reconciliation, the adjusted bank balance should match with the company’s ending adjusted cash balance.
So, the adjusted cash balance at the end of April is $3000
