Question

The following information pertains to Swifty Video Company.

1. Cash balance per books, July 31, $8,003

2. July bank service charge not recorded by the depositor $36.

3. Cash balance per books July 31 $8,024

4. Deposits in transit, July 31, $1,870.

5. Bank collected $1,270 note for Swifty in July, plus interest $44, less fee $28. The collection has not been recorded by Swifty and no interest has been accrued.

6. Outstanding checks, July 31, $599.

Answer 1

To determine the correct cash balance per the books, we need to account for the deposit and outstanding checks, as well as the bank service charge and the bank-collected note with interest and fee.

Step-by-step explanation:

The subject of this question is Business and the grade is High School.

The question provides information about Swifty Video Company's cash balance and various transactions related to it. To determine the correct cash balance per the books, we need to account for the deposit and outstanding checks, as well as the bank service charge and the bank-collected note with interest and fee.

Step 1: Subtract the recorded bank service charge of $36 from the cash balance per the books ($8,024) to get the adjusted cash balance ($7,988).

Step 2: Add the deposits in transit ($1,870) to the adjusted cash balance to get the unadjusted cash balance ($9,858).

Step 3: Subtract the outstanding checks ($599) from the unadjusted cash balance to get the correct cash balance per the books ($9,259).