Question

At June 30, Yaddof Company has the following bank information: cash balance per bank $3,600; outstanding checks $680; deposits in transit $500; credit memo for interest $150; bank service charge $20. What is Yaddof adjusted cash balance on June 30?

Answer 1

Answer: Yaddof Adjusted Cash Balance is $3,290

Explanation: Bank reconciliation of Yaddof Company as at 30th June

Balance per Bank                                          $3,600

Less:Outstanding Checks                             ($680)  

Add: Deposit in transit                                  $500

Less: Credit Memo for Interest                    ($150)          

Add: Bank Service Charge                            $20        

Adjusted Cash Balance                               $3,290