On December 31, Robinson Company\'s bank statement had a balance of $27,900. Ana

ID: 2509693 • Letter: O

Question

On December 31, Robinson Company's bank statement had a balance of $27,900. Analysis of the bank statement and comparison of the statement and records indicated the following: Deposits in transit at the end of December Outstanding checks at the end of December Bank service charge Customer's returned check, NSF Bank collection of note on our behalf Interest received on note s15,940 6,100 20 1,480 6,030 160 In reviewing the records, Robinson Company also discovered the following error: A check for $680 in legal expense was incorrectly recorded on the books as $860 Required: Compute the adjusted balance of Cash per bank statement. Adjusted balance of Cash:

Explanation / Answer

Bank Reconciliation Statement

Balance as per Bank Statement

$27900

Add: Deposit in transit at the end of December

$15940

Less: Outstanding checks at the end of December

($6100)

Add: Bank service Charge

$20

Less: Customer returned Check

($1480)

Less: Bank collection of note on our behalf

($6030)

Less: interest Received on Note

($160)

Add: Adjustment of incorrectly recorded check( 860 -680)

$180

Adjusted Balance of Cash

$30270