Question

A company is in the process of reconciling its bank account at Dec 31, 20x8. Relevant data is as follows:
	Cash balance per books	$25036
	Items on bank statement that have yet to be adjusted for:
	Bank service charges	116
	Interest revenue	75
	Outstanding cheques at December 31, 20x8	4447
	Deposit in transit at December 31, 20x8	1907
What is the balance per bank at December 31, 20x8?

Select one:

a. $27535

b. $22455

c. $27617

d. $27576

Answer 1

Balance per bank at December 31, 20x8 is:

First of all Ending cash balance is calculated which is $24,995

Company's cash balance
Cash balance per books	25,036
Less: Banks service charges	-116
Add: Interest Revenue	75
Ending Cash balance	24,995

Now ending cash balance should be equal to bank balance so bank balance will also be $24,995

Now balance per bank at December 31, 20x8 will be bank balance plus outstanding checks minus deposit in transit which is $27,535.

So balance per bank at December 31, 20x8 is $27,535. Answer is a.

Bank's cash balance
Bank Balance	27,535
Add: Deposit in transit	1,907.0
Less: Outstanding checks	-4,447
Ending bank balance	24,995