Question

At March 31, Cummins Company had a balance in its cash account of $10,700. At the...

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:

  • There was a deposit in transit for $5,356.
  • The bank statement reports a service charge of $174.
  • A credit memo included in the bank statement shows interest earned of $815.
  • Outstanding checks totaled $13,797.
  • The bank statement included a $2,570 NSF check deposited in April.

What is the true cash balance as of April 30?

A)29251

B)31821

C)36362

D)37177

Homework Answers

Answer #1

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

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Border Company's Cash account had a balance of $962 on August 31. This included a bank...
Border Company's Cash account had a balance of $962 on August 31. This included a bank deposit of $87 that was in transit. The August 31 bank statement contained the following information: Bank statement balance $1,089 NSF check 16 Bank service charge 7 Collection of notes receivable 68 Border also had checks outstanding of $169. What is Border's adjusted cash balance at August 31? a.$1,007 b.$940 c.$1,089 d.$920
Exercise 7-9 Don Wyatt is unable to reconcile the bank balance at January 31. Don’s reconciliation...
Exercise 7-9 Don Wyatt is unable to reconcile the bank balance at January 31. Don’s reconciliation is as follows. Cash balance per bank $3,760.20 Add: NSF check 590.00 Less: Bank service charge 30.00 Adjusted balance per bank $4,320.20 Cash balance per books $4,075.20 Less: Deposits in transit 630.00 Add: Outstanding checks 935.00 Adjusted balance per books $4,380.20 Prepare a correct bank reconciliation. (List items that increase cash balance first. Reconcile cash balance per bank first. Round answers to 2 decimal...
Jones Company shows the following data : Balance per cash account $3260 Balance per bank statement...
Jones Company shows the following data : Balance per cash account $3260 Balance per bank statement 3908 Outstanding checks 1400 Deposits in transit 3972 Bank service charge 75 Note collected ($340 is interest) 3340 NSF check 225 Error in recording computer supplies ; the amount of the check is $350, but it was recorded as $530 Required ; Please prepare a bank reconciliation as of 12/31/18. Please record any necessary journal entries.
Required:    Prepare a bank reconciliation to the correct balance in cash.                         Prepare any necessary jou
Required:    Prepare a bank reconciliation to the correct balance in cash.                         Prepare any necessary journal entries for Jack Company. Use the following information to prepare a bank reconciliation for Jack Company at April 30, 2016: Cash account balance, April 30, $19,572.80. Bank statement balance, April 30, $21,516.40. Service charge on bank statement not recorded in books, $140.00. Deposits in transit, $2,877.20. Outstanding checks, April 30, $1,893.60. The bank statement included a charge of $932.80 for A. Parish’s NSF check....
Problem 7-03A On July 31, 2022, Sunland Company had a cash balance per books of $6,330.00....
Problem 7-03A On July 31, 2022, Sunland Company had a cash balance per books of $6,330.00. The statement from Dakota State Bank on that date showed a balance of $7,880.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $22.00. 2. The bank collected $1,710.00 from a customer for Sunland Company through electronic funds transfer. 3. The July 31 receipts of $1,386.30 were not included in the...
Odum Corporation’s cash account showed a balance of $17,100 on March 31, 2016. The bank statement...
Odum Corporation’s cash account showed a balance of $17,100 on March 31, 2016. The bank statement balance for the same date indicated a balance of $17,821.55. The following additional information is available concerning Odum’s cash balance on March 31: • Undeposited cash on hand on March 31 amounted to $724.50. • A customer’s NSF check for $175.80 was returned with the bank statement. • A note for $2,000 plus interest of $25 was collected for Odum by the bank during...
Problem 7-03A (Part Level Submission) On July 31, 2022, Sandhill Co. had a cash balance per...
Problem 7-03A (Part Level Submission) On July 31, 2022, Sandhill Co. had a cash balance per books of $6,285.00. The statement from Dakota State Bank on that date showed a balance of $7,835.80. A comparison of the bank statement with the Cash account revealed the following facts. 1. The bank service charge for July was $17.00. 2. The bank collected $1,665.00 from a customer for Sandhill Co. through electronic funds transfer. 3. The July 31 receipts of $1,346.30 were not...
The unadjusted balance of the cash account for the company is $21,342 as of December 31,...
The unadjusted balance of the cash account for the company is $21,342 as of December 31, xxx1. The bank statement shows a balance of $27,350, including bank service charges $29, outstanding checks $7,700, NSF check from a customer $540, and deposit on transit $1,321. The check #433 was correctly written and paid by the bank for the amount of $234, however the check was registered in the books for $432. The company uses the perpetual inventory system. 10. When the...
a) Ladd Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance...
a) Ladd Company gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books, 4/30   $20,900 Deposits in transit 5,700 Notes receivable and interest collected by bank 9,600 Bank charge for check printing 134 Outstanding checks 15,500 NSF check   1,620 The adjusted cash balance per books on April 30 is b) At April 30, Dorale Company has the following bank information: cash balance per bank $4,500; outstanding checks $556; deposits in transit $571; credit memo for...
Exercise 7-15 On August 31, 2021, Sheridan Company had a cash balance per its books of...
Exercise 7-15 On August 31, 2021, Sheridan Company had a cash balance per its books of $26,660. The bank statement on that date showed a balance of $17,760. A comparison of the bank statement with the Cash account revealed the following. 1. The August 31 deposit of $17,050 was not included on the August bank statement. 2. The bank statement shows that Sheridan received EFT deposits from customers on account totalling $2,420 in August. Sheridan has not recorded any of...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT