Question

Annapolis Company's bank statement indicated an ending cash balance of $8,740. Alpha's accountant discovered that outstanding...

Annapolis Company's bank statement indicated an ending cash balance of $8,740. Alpha's accountant discovered that outstanding checks amounted to $765 and deposits in transit were $1,120. Additionally, the bank statement showed service charges of $25.

What is the correct adjusted ending cash balance

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Answer #1
Cash balance 8740
Minus: outstanding checks (765)
Add: deposits in transit 1120
Minus: service charges (25)
correct adjusted ending cash balance 9070
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