Hosung Company\'s Cash account shows a balance of $801.65 as of August 31 of thi

Question

Hosung Company's Cash account shows a balance of $801.65 as of August 31 of this year. The balance on the bank statement on that date is $1,383.00. Checks for $260.50, $425.10, and $331.00 are outstanding. The bank statement shows a check issued by another depositor for $237.25 (in other words, the bank made an error and charged Hosung Company for a check written by another company). The bank statement also shows an NSF check for $180 received from one of Hosung's customers. Service charges for the month were $18. What is the adjusted ledger balance of cash as of August 31? Round your answer to two decimal places.

Explanation / Answer

HOSUNG COMPANY Bank Reconciliation August 31 Cash balance per bank $1,383 Add: Bank Error       237.25    1,620.25 Less: Outstanding Checks      260.50      425.10      331.00    1,016.60 Adjusted cash balance per books       603.65 Cash balance per books $801.65 Less: NSF Check      180.00 Bank Charges         18.00       198.00 Adjusted cash balance per books       603.65 Ans

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