Tyler, Inc. had the following bank reconciliation at March 31. 2010: Balance per
ID: 2385186 • Letter: T
Question
Tyler, Inc. had the following bank reconciliation at March 31. 2010:
Balance per bank statement, 3/31/10
$37,200
Add: Deposit in transit
10,300
47,500
Less: Outstanding checks
12,600
Balance per books, 3/31/10
$34,900
Data per bank for the month of April 2010 follow:
Deposits
$46,700
Disbursements
49,700
All reconciling items at March 31, 2010 cleared the bank in April. Outstanding checks at April 30, 2010 totaled $6,000. There were no deposits in transit at April 30, 2010. What is the cash balance per books at April 30, 2010?
$38,500
$28,200
$31,900
$34,200
Balance per bank statement, 3/31/10
$37,200
Add: Deposit in transit
10,300
47,500
Less: Outstanding checks
12,600
Balance per books, 3/31/10
$34,900
Explanation / Answer
The balance per books for 03/31 is 34,900. This should be increased by the deposits But the deposits included the deposit in transit from 03/31 so need to be deducted. So 46,700 - 10,300 = 36,400. The disbursements should decreased the balance per books for 03/31. But the disbursements included the outstanding chks, so 49,700 - 12,600 + 6,000 = 43,100. Note that the 6,000 outstanding checks are NOT included in previous month thats why we have to add it in. Balance 03/31 34,900 Deposits 36,400 Disbursements (43,100) Balance 04/30 28,200 letter a
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