Easton Co. deposits all cash receipts on the day they are
received and makes all cash payments by check. At the close of
business on June 30, its Cash account shows a debit balance of
$63,709. Easton's June bank statement shows $61,149 on deposit in
the bank. Determine the adjusted cash balance using the following
information:
| Deposit in transit | $ | 4,850 |
| Outstanding checks | $ | 2,275 |
| Check printing fee, not yet recorded by company | $ | 22 |
| Interest earned on account, not yet recorded by the company | $ | 37 |
The adjusted cash balance should be:
The adjusted cash balance should be: $ 63,724
Explanation
| The adjusted cash balance | |
| $ | |
| Cash balance as per bank statement | 61,149.00 |
| Add: Deposits in transit | 4,850.00 |
| 65,999.00 | |
| Less: Outstanding checks | 2,275.00 |
| Adjusted cash balance per bank | 63,724.00 |
| Cash balance per books | 63,709.00 |
| Add Interest earned on account, not yet recorded | 37.00 |
| 63,746.00 | |
| Less: Check printing fee, not yet recorded | 22.00 |
| Adjusted cash balance per books | 63,724.00 |
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