Question

Helga Company prepares bank reconciliations that adjust to the correct balance of cash, based on the following:

Cash balance per bank, 9/30	$16,000
Note receivable collected by bank	8,000
Outstanding checks	12,000
Deposits-in-transit	6,000
Bank service charge	100
NSF check	2,000

Using the above information, determine the cash balance per books (before adjustments) for Helga Company.

Answer 1

Cash balance per bank 9/30					16,000
Add:Deposit in transit					6,000
					22,000
less:outstanding checks					12,000
Adjusted bank balance					10,000
Adjusted cash balance					10,000
Add:
Bank service charge				100
NSF Check				2,000	2,100
					12,100
less:
Note receivable collected by bank					8,000
Unadjusted cash balance					4,100
Cash balance per books (before adjustments ) = $4,100 answer