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.

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 1 year ago

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