Question

East End Hospital has a bank account and is ready to prepare its bank reconciliation on July 31. The July 31 balance on the books is $ 50000 and the balance per the bank statement is $ 35860 . Cash receipts of July 31 amounting to $ 9000 were recorded and then deposited in the bank's night depository. The bank did not include this deposit on its July statement. The bank statement included service charges of $ 140 . Patients had given the hospital some bad checks amounting to $ 11000 . The bank marked them NSF and returned them with the bank statement after charging the hospital for the $ 11000 . The hospital had made no entry for the return of these checks. The hospital's outstanding checks amounted to $ 6000 . What is the true, or adjusted, cash balance as of July 31?

Answer 1

East End Hospital
Bank Reconciliation
Jul- 31 .
Bank Statement Balance		35,860	Book Balance		50,000
Add:			Add:
Deposit in Transit	9,000		Proceeds of note less collection charge
Deduct:			Deduct:
			SERVICE CHARGE	140
Outstanding Checks	6,000
			NSF Check	11,000
Adjusted Bank Balance		38,860	Adjusted Book Balance		38,860
True Cash Balance	38,860