Question

The accountant for Fazzi Corp. was preparing a bank reconciliation as of April 30, 2017. The following items were identified: Fazzi's book balance $46,200 Outstanding checks 1,100 Interest earned on checking account 50 Customer's NSF check returned by the bank 500 In addition, Fazzi incorrectly recorded a customer's check in cash receipts as $150; the bank recorded the amount correctly as $510. What amount will Fazzi report as its adjusted cash balance at April 30, 2017

Answer 1

Answer:

See below

Explanation:

With regards to the above information, the adjusted cash balance at April 30, 2017 is computed as shown below;

Book balance

$46,200

Add:

Interest earned on checking account

$50

Less:

Customer's NSF check returned by the bank

($500)

Add:

Error in recording customer's check

($510 - $150)

$360

Add:

Outstanding checks

$1,100

Adjusted cash book balance

$47,210