Question

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $22,662. Franklin's August bank statement shows $21,837 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 7,350 Outstanding checks $ 5,800 Bank service fees, not yet recorded by company $ 145 The bank collected on a note receivable, not yet recorded by the company $ 870

Answer 1

Answer:

Adjusted balance = $23,387

Explanation:

                    Franklin Company

        Bank Reconciliation statement

Bank balance as of August 31                 $21,837

Add: Deposit in transit                             $ 7,350

                                                                 $29,187

Less: Outstanding check                        $(5,800)

Adjusted cash balance                          $23,387

Cash balance as of August 31                $22,662

Add: Collection of Note receivable       $     870

                                                                 $23,532

Less: Bank service charge                      $(    145)

Adjusted cash balance                          $23,387