Respuesta :
Answer:
$27,656.00
Explanation:
Information given;
Amount in $
Bank balance 34,351.00
Deposit in transit 4,240.00
Service charge 39.00
Interest earned 95.00
Outstanding checks 10,935.00)
NSF check deposit 650.00
Book balance 28,250.00
Considering the above, the transactions yet to be captured and to be adjusted in the books as at April 30 are as shown below.
Amounts in $
Book balance 28,250.00
NSF Check (650.00)
Interest earned 95.00
Service charge (39.00)
Adjusted book balance 27,656.00
Answer:
Explanation:
Cash balance As Per The books/ Cash Account Adjustment:
Unadjusted Or Opening Balance: $28,250
Deduct Bank Service Charge: ($39 )
Add: Interest Earned : $95
Deduct: NSF Check Deposit: ($650)
Therefore: 28,250-39+95-650= $27,656
Bank statement Adjustment:
Balance as Per Bank Statement: $34,351
Add: A deposit Transfer not reflected in the Account: $4,240
Deduct Outstanding Checks: ($10,935)
Therefore: 34,351+4,240-10935= $27,656
The True Cash Balance as of April 30 is $27,656
Basically, the additionally information given after the Bank Statement and the Unadjusted Cash Account Balances represent the untreated transactions in the course of the year that caused the differences between the two. Ideally, the Bank Statement and the Cash Account Balances should be the same.
By carrying out a Reconciliation, the true balance can be obtained.
Adjustments
- Deposits in transit: It is a transaction in the Cash Account that is yet to be reflected in the bank account so 4, 240 will be added to the bank total.
- Service Charge: This is a bank charge that is yet to reflect in the cash balance. Bank Charges are to be deducted because they reduce balances. so $ 39 is deducted from the cash balance
- Interest Earned: Earned on the Bank Balance, it increases the bank balance but it is yet to reflect in the cash account. SO add $ 95 to the cash balance.
- Outstanding Checks: These have been issued by the business but yet to be cashed by the receivers. It should be deducted from the bank Statement. Therefore, $10,935 should be deducted from the bank balance
- An NSF (Not Sufficient Fund) Check is is not honored by the bank of the entity issuing the check due to insufficient fund in the checking account. Since it was not honored by the bank, it has to be deducted from the cash account balance as well. Therefore, deduct $650 from the cash account balance
