Question

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Cash balance per company books on January 30 $ 6,125 Deposits in transit at month-end $ 2,080 Outstanding checks at month-end $ 660 Bank service charges $ 39 EFT automatically deducted monthly, not yet recorded by Maxi $ 660 An NSF check returned on a customer account $ 405 The adjusted cash balance per the books on January 31 is:

Answer 1

$5,021

Step-by-step explanation:

The bank reconciliation is as shown below;

Amount in $

Balance per bank statement XXXX

Deposit in transit 2,080.00

Outstanding check (660.00)

Bank charges 39.00

NSF Check 405.00

EFT deduction 660.00

Book balance 6,125.00

Bank charges (39.00)

NSF Check (405.00)

EFT deduction (660.00)

Adjusted book balance 5,021.00

The elements to be adjusted are bank charges, NSF check and EFT deduction.