Question

at august 31, planter company has a cash balance per books of $9,500 and the following additional data from the bank statement: charge for printing planter company checks $35 and interest earned on checking account balance $40. in addition, planter company has outstanding checks of $800. determine the adjusted cash balance per books at august 31. the adjusted cash balance per books at august 31

Answer 1

To determine the adjusted cash balance per books at August 31, subtract the charge for printing checks and outstanding checks from the cash balance per books, and add the interest earned on the checking account balance.

Step-by-step explanation:

To determine the adjusted cash balance per books at August 31, we need to consider the additional data from the bank statement.

The charge for printing Planter Company checks of $35 should be subtracted from the cash balance per books, as it is a deduction from the company's account. The interest earned on the checking account balance of $40 should be added to the cash balance per books, as it is an additional income.

In addition, the outstanding checks of $800 should also be subtracted from the cash balance per books, as they have not yet cleared the bank.

So, the adjusted cash balance per books at August 31 can be calculated as follows:

1. Starting cash balance per books: $9,500
2. Less charge for printing checks: -$35
3. Add interest earned: +$40
4. Less outstanding checks: -$800

Therefore, the adjusted cash balance per books at August 31 would be $8,705.

Answer 2

The adjusted cash balance per books at August 31 is $8,705.

How did we get the value?

To determine the adjusted cash balance per books at August 31, we need to consider the cash balance per books and make adjustments for the items mentioned in the bank statement.

Starting with the cash balance per books:

Cash balance per books = $9,500

Consider the adjustments:

1. Charge for printing Planter Company checks: Deduct this charge from the cash balance per books.

$9,500 - $35 = $9,465

2. Interest earned on checking account balance: Add the interest earned to the adjusted cash balance.

$9,465 + $40 = $9,505

3. Outstanding checks: Deduct the amount of outstanding checks from the adjusted cash balance.

$9,505 - $800 = $8,705

Therefore, the adjusted cash balance per books at August 31 is $8,705.

Complete question:

At August 31, Planter Company has a cash balance per books of $9.500 and the following additional data from the bank statement: charge for printing Planter Company checks $35 and interest earned on checking account balance $40. In addition, Planter Company has outstanding checks of $800. Determine the adjusted cash balance per books at August 31 The adjusted cash balance per books at August 31 $.......