Question

At july 31, ivanhoe company has this bank information: cash balance per bank $7,140, outstanding checks $690, deposits in transit $1,280 and a bank service charge $50. determine the adjusted cash balance per bank at july 31.

Answer 1

Unadjusted balance per bank $7140 Plus deposits in transit $1280 Minus outstanding checks $ 690 Unadjusted balance+deposit in transit-outstanding checks =7140+1280-690 =7730 is adjusted cash balance It is not necessary to deduct the bank service charge again from the bank balance.