Question

Great Southeast ​Company's Cash account shows an ending balance of $ 660. The bank statement shows a $ 27 service charge and an NSF check for $ 130. A $ 270 deposit is in​ transit, and outstanding checks total $ 310. What is Great Southeast​'s adjusted cash​ balance?

Answer 1

$503

Step-by-step explanation:

The computation of the adjusted cash balance is shown below:

As we know that

Adjusted cash balance is = Cash ending balance - NSF Checks - Service charge

= $660 - $130 - $27

= $503

And we do not considered the other two items as they are not impact the cash balance

Basically we applied the above formula