Question

In preparing its August 31, 2017 bank reconciliation, Adel Corp. has available the following information: Balance per bank statement, 8/31/17 $21,650 Deposit in transit, 8/31/17 $3,900 Return of customer’s check for insufficient funds, 8/30/17 $600 Outstanding checks, 8/31/17 $2,750 Bank service charges for August $100 At August 31, 2017, Adel's correct cash balance is

Answer 1

$22,800

Step-by-step explanation:

Given that,

Balance per bank statement, 8/31/17 = $21,650

Deposit in transit, 8/31/17 = $3,900

Return of customer’s check for insufficient funds, 8/30/17 = $600

Outstanding checks, 8/31/17 = $2,750

Bank service charges for August = $100

At August 31, 2017, Adel's correct cash balance:

= Balance as per bank statement 8/31/17 + Deposit in transit - Outstanding checks

= $21,650 + $3,900 - $2,750

= $22,800