At April 30, Tamarisk, Inc. has the following bank information:
Cash balance per bank $3,700
Outstanding checks $290
Deposits in transit $550
Credit memo for interest $10
Bank service charge $20
What is Tamarisk adjusted cash balance on April 30?
Bank Reconciliation is the process of matching the cash balances in an company's accounting records with the corresponding information on a bank statement. The purpose of doing this process is to reconcile the differences between the two balances, and to book necessary adjustments to the accounting records.
Answer and Explanation:
The correct answer is c. $3,960.
|Cash Balance per bank||$3,700|
|Add: Deposit in Transit||550|
|Less: Outstanding Checks||290|
|Adjusted Cash balance per bank||$3,960|
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from Accounting 101: Financial AccountingChapter 5 / Lesson 7