Question

At July 31, Crane Company has this bank information: cash balance per bank $7,390, outstanding checks $725, deposits in transit $1,265, and a bank service charge $55. Determine the adjusted cash balance per bank at July 31.

Answer 1

The adjusted cash balance per bank at July 31 is $7,930

Step-by-step explanation:

The computation of the adjusted cash balance per bank after reconciliation is shown below:

= Cash balance per bank + deposits in transit - outstanding checks

= $7,390 + $1,265 - $725

= $7,930

The bank service charge would not be considered as it is adjusted under the bank balance as a negative amount. Hence, we ignored it