Question

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $25,025. Clayborn's May bank statement shows $22,200 on deposit in the bank. Determine the adjusted cash balance using the following information:

Deposit in transit	$	7,600
Outstanding checks	$	6,200
Bank service fees, not yet recorded by company	$	105
A NSF check from a customer, not yet recorded by the company	$	1,320

The adjusted cash balance should be:

Answer 1

The adjusted cash balance
	$
Cash balance as per bank statement	22,200.00
Add: Deposits in transit	7,600.00
	29,800.00
Less: Outstanding checks	6,200.00
Adjusted cash balance per bank	23,600.00
Cash balance per books	25,025.00
Less: Bank service fees not recorded	105.00
	24,920.00
Less: NSF not recorded	1,320.00
Adjusted cash balance per books	23,600.00