Rogers Company deposits all receipts and makes all payments by check. The follow

Question

Rogers Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION



Balance per bank $26,746
Add: Deposits in transit 2,100
Deduct: Outstanding checks (3,800)
Balance per books $25,046



Month of April Results
Per Bank Per Books
Balance April 30 $27,995 $27,355
April deposits 11,784 13,889
April checks 11,100 10,080
April note collected (not included in April deposits) 3,000 -0-
April bank service charge 35 -0-
April NSF check of a customer returned by the bank
(recorded by bank as a charge) 900 -0-



Instructions
(a) Calculate the amount of the April 30:
1. Deposits in transit
2. Outstanding checks
(b) What is the April 30 adjusted cash balance? Show all work.

Explanation / Answer

a) i) Banks =$ 11784 -2100 = $ 9684 Deposits in Transit Books = $13889 Banks = - 9684 Deposits in Transit =$ 4205 ii) Banks =$ 11100 -3800 = $ 7300 Outstanding checks Books =$ 10080 Banks = - 7300 Outstanding checks =$ 2780 b) April 30 adjusted cash balance is $27,995 + 4205 - 2780 = $ 29420 or $27,355 + 3,000 - (35+900) = $ 29420 April 30 adjusted cash balance is $ 29420

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