Dexter Company's bank reconciliation shows an adjusted cash balance of $5,398.80. The following items also appear...

Dexter Company's bank reconciliation shows an adjusted cash balance of $5,398.80. The following items also appear on the reconciliation:

NSF check	$182.16
Deposit in transit	357.68
Interest earned	61.24
Outstanding checks	525.43
Bank service charges	75.00

Required:

1. Determine the balance on the bank statement prior to adjustment. Round your answer to the nearest cent.

2. Determine the balance on the books prior to adjustment. Round your answer to the nearest cent.

Solutions

Expert Solution

Answers:-

1 - Bank Balance Prior to Adjustments = $5,566.55

2 - Cash Balance Prior to Adjustments = $5,594.72

Explanations :-

1 - Bank Balance Prior to Adjustments

Adjusted balance	$5,398.80
Add :-
Outstanding checks	$525.43
Less :-
Deposit in transit	($357.68)

Bank Balance Prior to Adjustments	$5,566.55

2 - Cash Balance Prior to Adjustments

Adjusted balance	$5,398.80
Add :-
NSF check	$182.16
Bank Service Charges	$75
Less :-
Interest Earned	($61.24)

Cash Balance Prior to Adjustments	$5,594.72

ekkarill92 answered 2 years ago

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