Clayborn Company deposits all cash receipts on the day they are received and mak

Question

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $25,025. Clayborn's May bank statement shows $22,200 on deposit in the bank. Determine the adjusted cash balance using the following information:

The adjusted cash balance should be?:

Deposit in transit $7,600 Outstanding checks $6,200 Bank service fees, not yet recorded by company $105 A NSF check from a customer, not yet recorded by the company $1,320

Explanation / Answer

Balance as per bank account $22,200 Add: Deposit in transit $7,600 Add: Bank service Fee, Not yet recorded $105 Less: Outstanding Checks $6,200 $23,705 Balance in Cash accounts $25,025 Less: NSF cheque from customer $1,320 $23,705

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.