Question

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $27,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following

Deposit in transit 3,350
Outstanding checks 1,350

Answer 1

Answer: $29,861

Step-by-step explanation:

In order to adjust the bank statement balance to the books, the following is done:

= Bank statement + Deposit in transit - Outstanding checks

= 27,861 + 3,350 - 1,350

= $29,861