Question

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $72,709. Easton's June bank statement shows $68,349 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $7,550 Outstanding checks $3,175 Check printing fee, not yet recorded by company $40 Interest earned on account, not yet recorded by the company $55 The adjusted cash balance should be _________

Answer 1

Answer:

Easton Co.'s adjusted book balance June 30 =  $72,724

Explanation:

Bank balance June 30:  $68,349        Book balance June 30:  $72,709

Deposit in transit:              $7,550        Interest earned:                     $55

Outstanding checks:        ($3,175)       Check printing fees:            ($40)  

Adjusted bank balance: $72,724       Adjusted book balance:  $72,724