Question

Linetech Company's bank statement showed an ending balance of $8,300. Items appearing in the bank reconciliation included: outstanding checks, $650; deposits in transit, $1,300; bank service charges, $53; and Driver Company's $265 check erroneously deducted from Linetech's bank account by the bank. What is the correct cash balance at the end of the month?

Answer 1

Answer:

$9,215

Explanation:

Given that,

Bank balance = $8,300

Outstanding checks = $650;

Deposits in transit = $1,300;

Bank service charges = $53

Bank error = $265

Book cash balance:

= Bank balance - Outstanding checks + Deposits in transit + Bank error

= $8,300 - $650 + $1,300 + $265

= $9,215

Therefore, the correct cash balance at the end of the month is $9,215.