Question

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $61,709. Easton's June bank statement shows $59,549 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 4,250 Outstanding checks $ 2,075 Check printing fee, not yet recorded by company $ 18 Interest earned on account, not yet recorded by the company $ 33

Answer 1

ADJUSTED BOOK BALANCE

Bank balance $59,549 Book balance $61,709

+ Deposit in transit $4,250 Interest earned $33

- Outstanding checks $2,075 Bank service fees $18

Adjusted book $61,724 $61,724

balance