Easton Co. deposits all cash receipts on the day they are received and makes all

Question

Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $67,709. Easton's June bank statement shows $64,349 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $ 6,050 Outstanding checks $ 2,675 Check printing fee, not yet recorded by company $ 30 Interest earned on account, not yet recorded by the company $ 45 The adjusted cash balance should be:

Explanation / Answer

The adjusted cash balance should be $67,724.

Balance as per bank statement on June 30 $64,349 Add: Deposit in transit $6,050 Less: outstanding checks $2,675 Adjusted cash balance as per bank statement $67,724 Balance as per accounting records on June 30 $67,709 Less: Check printing fee $30 Add: Interest earned $45 Adjusted cash balance as per accounting records $67,724

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

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