Question

Pacioli Company developed the following reconciling information in preparing its September bank reconciliation: Cash balance per bank, 9/30 $12,000 Note receivable collected by bank 6,000 Outstanding checks 9,000 Deposits in transit 4,500 Bank service charge 75 NSF check 1,200 Determine the cash balance per books (before adjustments) for Pacioli Company. a. $8,775. b. $16,500. c. $2,775. d. $12,000.

Answer 1

c. $2,775

Step-by-step explanation:

The computation of cash balance per books (before adjustments) is shown below:-

Balance per book = Balance per Bank - Notes Receivable collected by bank - Deposits in transit + Bank service charges + NSF

= $12,000 - $6,000 - $4,500 + $75 + $1,200

= $2,775

Therefore for computing the balance per book we simply applied the above formula.