will someone show me how to get to that answer that is highlighted? Grier Food S

Question

will someone show me how to get to that answer that is highlighted?

Grier Food Store used the following information in recording its bank reconciliation for the month of April. Balance per books April 30 Balance per bank April 30 $905 $11,300 (1) Checks written in April but still outstanding $9,100. (2) Deposits of April 30 not yet recorded by bank $4,900 (3) NSF check of customer returned by bank $500. (4) Check No. 210 for $594 was correctly issued and paid by bank but incorrectly entered in the cash payments journal as payment on account for $549. (5) Bank service charge for April was $40. (6) A payment on account was incorrectly entered in the cash payments journal and posted to the accounts payable subsidiary ledger for $824 when Check No. 318 was correctly prepared for $284. The check cleared the bank in April. (7)The bank collected a note receivable for the company of $6,000 plus $240 interest revenue. ANSWER: Adjusted cash balance $7,100

Explanation / Answer

Bank reconciliation statement:

$6,780

Cash balance per books $905 Add: (7) Error on check No. 318 $540 (8)Collect $6,000 note and interest $240 $6,240

$6,780

$7,685 Less: (4) NSF check $500 (5) Error on check No. 210 $45 (6) Bank service charges $40 $585 Adjusted cash balance per books $7,100 Cash balance per Bank $11,300 Add: (3) Deposit in transit $4,900 $16,200 Less: (1) April Outstanding checks $6,300 (2) March Outstanding checks $2,800 $9,100 Adjusted cash balance per bank $7,100

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