Question

A company has the following information. 1. Cash balance per bank, July 31, $7,328 2. July bank service charge on bank statement, $40 3. Cash balance per company books, July 31, $7,280 4. Bank statement shows a Note Receivable of $2,000 plus $16 of interest was collected by the bank. 5. Outstanding checks, July 31, $772 6. Deposits in transit, July 31, $2,700 Compute the adjusted cash balance per company books. Do not enter a dollar sign or any commas.

Answer 1

Please find the answe below

Particulars	Amount
Cash Balance as per Company's Books	7280
Less:
Deposits in Transit (Cash and checks that have been received and recorded by the company but have not yet been recorded on the bank statement)	-2700
July Bank Service Charge on Bank Statement (Banks deduct charges for services they provide to customers but these amounts are usually relatively small)	-40
Add:
Notes Receivables (Promise to receive money at a future date, generally banks provide the service of collecting the same on client's behalf)	2000
Interest (Periodically paid by the bank on the balance maintained in the account)	16
Outstanding Checks (Checks that have been issued by the company to creditors but the payments have not yet been processed)	772
Adjusted Cash Balance as per Company's Books	7328
Balance as per Bank	7328
Difference	NIL