On September 30, 2016, the bank statement of Fine Company showed a balance of $1

Question

On September 30, 2016, the bank statement of Fine Company showed a balance of $14,850. The following information was revealed by comparing the bank statement to the cash balance in Fine's accounting records: (1) deposits in transit amounted to $6,015 (2) outstanding checks amounted to $10,630 (3) a $840 check was incorrectly drawn on Fine's account (4) NSF checks returned by the bank were $1,420 (5) bank service charge was $49 (6) credit memo for $220 for the collection of one of the company's account receivable Based on the above information the true cash balance was:

Explanation / Answer

True cash balance = 14850+6015-10630+840= $11075

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