Triple Company collected the following information to prepare its September bank reconciliation: Cash balance per books, December 31, $75,750. Note receivable of $4,200 plus $300 of interest collected, $4,500. Outstanding checks, $14,500. Deposits in transit, $10,250. Triple Company erroneously recorded a $320 outflow as a $230 cash outflow. The bank erroneously subtracted $750 from Triple Company's checking account. The bank should have subtracted the money to a different customer's account. Bank service charges, $50. NSF check, $600. How much is the adjusted cash balance per books on December 31?
Triple Company collected the following information to prepare its September bank reconciliation: Cash balance per books, December 31, $75,750. Note receivable of $4,200 plus $300 of interest collected, $4,500. Outstanding checks, $14,500. Deposits in transit, $10,250.
Triple Company erroneously recorded a $320 outflow as a $230 cash outflow. The bank erroneously subtracted $750 from Triple Company's checking account. The bank should have subtracted the money to a different customer's account. Bank service charges, $50. NSF check, $500. How much is the adjusted cash balance per books on December 31?
$79,610
$79,790
$71,510
$71,410
an: $79,610
Solution:
Balance per books on Sep. 30, $75,750
Add: Note
collected by the bank including interest, $4,500
Less: Bank service charge, ($50)
Less: NSF check, ($500)
Less: Book error (see note below), ($90)
Adjusted cash balance per books, $79,610
Note: Triple Company paid $320 but subtracted only $230 from its books. The company needs to subtract an additional $90.
Double Company collected the following information to prepare its September bank reconciliation: Cash balance per bank,
September 30, $72,700. Note receivable of $1,700 plus $200 of interest collected, $1,900. Outstanding checks, $4,600. Deposits in transit, $2,150. Double Company erroneously recorded a $1,000 cash outflow as a $100 cash outflow. The bank erroneously deducted $300 from Double Company's checking account. The bank should have taken the money from a different customer's account. Bank service charges, $50. NSF check, $450. How much is the adjusted cash balance per bank on September
30?
$70,100
$70,550
$70,250
$70,300
an: $70,550
Solution:
Balance per bank on Sep. 30, $72,700
Add: Deposits in transit, $2,150
Less: Outstanding checks, ($4,600)
Add: Bank error (see note below), $300
Adjusted cash balance per bank, $70,550
Note: The bank removed money from Double Company's account; the bank statement understates Double's cash balance and the bank needs to be notified and instructed to return the money to Double's bank account.
Barker Company collected the following information to prepare its November bank reconciliation:
Cash balance per bank, November 30
$21,000
Note receivable plus interest collected
9,000
Outstanding checks
6,000
Deposits in transit
5,400
Bank service charges
85
NSF check
2,100
How much is the cash balance per books prior to preparing the reconciliation?
A. $20,400
B.
$13,585
C. $6,815
D. $27,815
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