Question

Question 18

Waterway Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION
Balance per bank		$67,840
Add: Deposits in transit		5,376
Deduct: Outstanding checks		(9,728	)
Balance per books		$63,488

Month of April Results
		Per Bank		Per Books
Balance April 30		$71,680		$70,400
April deposits		30,720		35,840
April checks		28,416		25,600
April note collected (not included in April deposits)		7,680		-0-
April bank service charge		80		-0-
April NSF check of a customer returned by the bank (recorded by bank as a charge)		2,304		-0-

Calculate the amount of the April 30:

1.		Deposits in transit		$
2.		Outstanding checks		$

What is the April 30 adjusted cash balance?

Adjusted cash balance

$

Answer 1

1.

Deposit in transit on April 30 = April deposits per book - (April deposits per bank - Deposit in transit at March 31)

= 35,840 - (30,720 - 5,376)

= 35,840 - 25,344

= $10,496

2.

Outstanding checks at April 30 = Checks written in April - (Checks cleared in April - Outstanding checks at march 31)

= 25,600 - (28,416 - 9,728)

= 25,600 - 18,688

= $6,912

3.

Cash balance per books, April 30	70,400
Note collected by bank	7,680
Bank service charge	- 80
NSF check of a customer returned by the bank	- 2,304
Adjusted cash balance	$75,696

Adjusted cash balance, April 30 = $75,696