Question

At August 31, Sheridan Company has a cash balance per books of $10,100 and the following additional data from the bank statement: charge for printing Sheridan Company checks $35 and interest earned on checking account balance $40. In addition, Sheridan Company has outstanding checks of $1,060. Determine the adjusted cash balance per books at August 31. $ The adjusted cash balance per books at August 31 9045

Answer 1

Answer:

$9,045

Explanation:

                                       Sheridan Company

                             Bank Reconciliation Statement

                                               August 31

Particulars                                                               $                       $

Cash balance per books                                    10,100                          

Add: Earned interest on checking account           40                10,140

Less: Check printing fee                                         (35)

         Outstanding checks                                  (1,060)              (1,095)

Adjusted cash balance per books                                               9,045

Notes:

1. Since Sheridan company does not know the information of interest earned, that is why the company have to add "Interest earned" with the cash balance.

2. Again, as the printing charge has been deducted by the bank, therefore, the company should deduct it from the cash book balance. Usually, outstanding checks deducts from the cash book balance.