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Angelina_Jolie [31]
4 years ago
10

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of b

usiness 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____________.
Business
1 answer:
Andrew [12]4 years ago
7 0

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

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