Question

Electric Sunset Company gathered the following reconciling information in preparing its July bank reconciliation:

Cash balance per books, 7/31	$5,500
Deposits in transit	300
Notes receivable and interest collected by bank	1,100
Bank charge for check printing	20
Outstanding checks	2,000
NSF check	170

The adjusted cash balance per books on July 31 is

Question 1 options:

	a) $4,410.
	b) $6,410.
	c) $6,710.
	d) $4,710.

Answer 1

Notes receivable and interest collected by banks should be added.

Bank charges for check printing should be deducted.

NSF check should be deducted.

Adjusted cash balance = $5,500 + $1,100 - $20 - $170 = $6,410

Option b)