At March 31, Cummins Company had a balance in its cash account of $10,700. At the end of March, the company determined that it had outstanding checks of $1,160, deposits in transit of $720, a bank service charge of $40, and an NSF check from a customer for $220. The true cash balance at March 31 is?
A) 10260
B) 10440
C)10700
D)9940
Part 2
The April 30 bank statement for Trimble Corporation shows an ending balance of $40,262. The unadjusted cash account balance was $33,750. The accountant for Trimble gathered the following information:
What is the true cash balance as of April 30?
A)29251
B)31821
C)36362
D)37177
Part-1
Answer:
The true cash balance at March 31 = $ 10,440
Working notes for the above answer is as under
balance in its cash account |
10700 |
|
Less: |
||
Bank service charge |
40 |
|
NSF check |
220 |
|
-260 |
||
The true cash balance at March 31 |
10440 |
_________________________________________________________
Part-2
Answer:
The true cash balance at April 30 = 31,821
Working notes for the above answer is as under
Unadjusted bank balance |
40262 |
Add |
|
Deposits |
5356 |
Less: |
|
Outstanding checks |
-13797 |
true cash balance as of April 30 |
31821 |
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