Question

The unadjusted balance of the company's Cash account was $26,620 at the end of June. The bank statement shows a balance on June 30 of $26,960. Outstanding checks totaled $4,000 at June 30. Deposit in transit totaled $3,000 on June 30. The bank statement included unrecorded interest earned in the amount of $150. Check #1221 (in payment of account payable) was written for $4,900, but recorded in the accounting records as $4,090. The adjusted bank and book balance is:_______.

Answer 1

Adjusted bank and book balance is $25,960 and $25,960 respectively

Step-by-step explanation:

Bank statement balance Book balance

Opening balance 26,960 26,620

Add: Deposit in transit Interest earned

3,000 150

Less: Outstanding check Error on check

4,000 (4,900 -4,090) = 810

Adjusted Balance $25,960 $25,960