Question

Malik Corp.'s bank statement has an ending balance of $50,000. The deposits in transit were $6,000. NSF checks were $1,000. Checks outstanding at the end of the month were $3,000. Using the bank statement, what is the corrected cash balance?

Answer 1

Answer:

Corrected cash balance =

Ending balance           = $50,000

Deposit in transit         = + $6,000

NSF Checks                 =  - $1,000

Outstanding checks    =  - $3,000

Corrected cash balance = $52,000

Explanation:

To make Adjustments to the cash balance, follow these steps;

• Ending Balance from Bank statement
• Add Deposits in Transit
• Deduct NSF checks
• Deduct Outstanding checks