Question

In: Accounting

What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)?

Egrane, Incorporated's monthly bank statement showed the ending balance of cash of $20,400. The bank reconciliation for the period showed an adjustment for a deposit in transit of $2,450, outstanding checks of $3,900, an NSF check of $2,600, bank service charges of $125 and the EFT from a customer in payment of the customer's account of $3,400.

 

What was the cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation)?

 

Multiple Choice

  • $18,275

  • $24,825

  • $18,950

  • $21,850

Solutions

Expert Solution

Particulars Amount
Ending balance of cash as per bank statement $20,400
Add: Deposit in transit 2,450
NSF check 2,600
Bank service charges 125
   
Less: Outstanding checks 3,900
EFT 3,400
Cash balance on the Egrane's books (before the adjustments for items on the bank reconciliation) $18,275

 

$18,275 is the correct answer.

DEEPIKA GOYAL answered 2 years ago
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