Question

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $19,525. Clayborn's May bank statement shows $17,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 5,950 Outstanding checks $ 5,100 Bank service fees, not yet recorded by company $ 50 A NSF check from a customer, not yet recorded by the company $ 825. The adjusted cash balance should be____________.

Answer 1

Answer:

Adjusted cash balance =  $18650

Explanation:

given data

Debit balance = 19,525

May bank statement deposit  = $17,800

Deposit in transit = $5,950

Outstanding checks = $5,100

bank service fees not recorded  = $50

NSF check not yet recorded = $825

to find out

adjusted cash balance

solution

Adjusted cash balance will be here

Adjusted cash balance = Debit balance  - bank service fees not recorded  - NSF check not recorded

Adjusted cash balance = 19525 - 50 - 825

Adjusted cash balance =  $18650

and

adjusted book balance = Balance as per pass book  + deposit in transit  - outstanding checks

adjusted book balance = 17800 + 5950 - 5100

adjusted book balance = $18650