Copyright

At April 30, Tamarisk, Inc. has the following bank information: Cash balance per bank $3,700,...

Question:

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?

(a) $3,990

(b) $3,440

(c) $3,960

(d) $3,970

Bank Reconciliation:

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


Learn more about this topic:

Loading...
What is Bank Reconciliation? - Definition, Purpose, Process & Examples

from Accounting 101: Financial Accounting

Chapter 5 / Lesson 7
205K

Related to this Question

Explore our homework questions and answers library