Question

The accounting records of Golden Company showed cash of $15,250 at June 30. The balance per the bank statement at June 30 was $15,125. The only reconciling items were deposits in transit of $3,200, outstanding checks totaling $4,100, an NSF check for $1,000 returned by the bank which Golden had not yet charged back to the customer, and a bank service charge of $25. The preparation of the bank reconciliation should indicate that Golden's adjusted cash balance at June 30 is:

Answer 1

Answer:

$14225

Explanation:

The adjusted cash balance shows money that should be present in your bank account at a particular date assuming all the transactions entered in the balance sheet are accurate.

Given:

Cash as at June 30 = $15250, NSF check of $1000 returned by the bank and a service charge of $25.

Golden adjusted cash balance at June 30 = Cash as at June 30 - NSF check returned by the bank - service charge = $15250 - $1000 - $25 = $14225