Question

On October 31, 2018, the bank statement shows that your company has $13,456.73 in its checking account. You are aware of three outstanding checks that total of $2,862.19. During October, 2018, the bank rejected two deposited checks from customers totaling $ 779.19 because of insufficient funds and charged you $22.00 in service fees. You had not yet received notice about the bad checks, but you were aware of and have recorded the $22.00 of service fees. Prior to adjustment on October 31, 2018, your Cash account would have a balance of: (Round your answer to 2 decimal places.)

Answer 1

Answer:

$11,373.73

Explanation:

The bank balance does not show or reflect the outstanding checks, and the unadjusted cash account per the company does not reflect the NSF check.

Unadjusted balance per books

Balance as per bank statement $13,456.73

Less outstanding checks $2,862.19

Add rejected deposited checks $779.19

Balance as per Cash book $11,373.73

Therefore Prior to adjustment on October 31, 2018, the Cash account would have a balance of $11,373.73

Answer 2

Answer:

$11,373

Explanation:

Balance as per bank statement               $13,456.73

Unpresented checks                                ($2,862.19)

Dishonored Checks                                   $ 779.19

Balance as per cash book                            $11,373