As of June 30, 2018, the bank statement showed an ending balance of $16,523. The

Question

As of June 30, 2018, the bank statement showed an ending balance of $16,523. The unadjusted Cash account balance was $15,512. The following information is available:

1. Deposit in transit, $2,835.

2. Credit memo in bank statement for interest earned in June, $12.

3. Outstanding check, $3,845.

4. Debit memo for service charge, $11.

Required

Determine the true cash balance by preparing a bank reconciliation as of June 30, 2018, using the preceding information. (Negative amounts should be indicated with minus sign.)

Bank Reconciliation Unadjusted bank balance 6/30/2018 True cash balance 6/30/2018 Unadjusted book balance 6/30/2018 True cash balance 6/30/2018

Explanation / Answer

Bank Reconciliation Unadjusted bank balance 6/30/2018 16,523 Add:Deposit in transit 2,835 less:outstanding checks 3,845 True cash balance 6/30/2018 15,513 Unadjusted book balance 6/30/2018 15,512 Add:interest earned 12 less:Service charge 11 True cash balance 6/30/2018 15,513

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