Question

In preparing its bank reconciliation for the month of April 2020, Sells, Inc. has available the following information. Balance per bank statement, 4/30/20 $40920 NSF check returned with 4/30/20 bank statement 1450 Deposits in transit, 4/30/20 10200 Outstanding checks, 4/30/20 15060 Bank service charges for April 60 What should be the adjusted cash balance at April 30, 2020?

Answer 1

Answer:

The adjusted cash balance at April 30, 2020 is $36,060

Explanation:

The adjusted cash balance at April 30, 2020 is computed as:

Adjusted cash balance = Balance as per bank statement, 4/30/20 + Deposit in transit, 4/30/20 - Outstanding check, 4/30/20

where

Balance as per bank statement is $40,920

Deposit in transit is $10,200

Outstanding check is $15,060

= $40,920 + $10,200 - $15,060

= $51,120 - $15,060

= $36,060