Question

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

Business   Accounting   
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Homework Answers

Answer #1

Answer: a.$1,007

Explanation

Calculation of adjusted cash balance per books on August 31
$
Cash balance per books, August 31          962.00
Add: Collection of notes receivable            68.00
      1,030.00
Less:
Bank service charge            (7.00)
NSF Check          (16.00)
Adjusted cash balance per books on August 31 1,007.00
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