What is the True Cash Balance? The following information is available for Trinkl

Question

What is the True Cash Balance?

The following information is available for Trinkle Company for the month of June: 1. The unadjusted balance per the bank statement on June 30 was $81,500. 2. Deposits in transit on June 30 were $3,150. 3. A debit memo was included with the bank statement for a service charge of $40. 4. A $5,611 check written in June had not been paid by the bank. 5. The bank statement included a $950 credit memo for the collection of a note. The principal of the note was $900, and the interest collected amounted to $50. Required Determine the true cash balance as of June 30.

Explanation / Answer

Answer: Calculation of the True balance :

True cash balance=Unadjusted Bank Balance+Deposit in transit-Outstanding check

=81500+3150-5611

=79039

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