Owen Company\'s unadjusted book balance at June 30, 2016 is $10,640. The company
ID: 2581989 • Letter: O
Question
Owen Company's unadjusted book balance at June 30, 2016 is $10,640. The company's bank statement reveals bank service charges of $70. Two credit memos are included in the bank statement: one for $1,100, which represents a collection that the bank made for Owen, and one for $100, which represents the amount of interest that Owen had earned on its interest-bearing account in June. Based on this information, Owen's true cash balance is:
Owen Company's unadjusted book balance at June 30, 2016 is $10,640. The company's bank statement reveals bank service charges of $70. Two credit memos are included in the bank statement: one for $1,100, which represents a collection that the bank made for Owen, and one for $100, which represents the amount of interest that Owen had earned on its interest-bearing account in June. Based on this information, Owen's true cash balance is:
Explanation / Answer
Particulars Amt unadjusted book balance at June 30, 2016 10640 Less: Bank Charges 70 Add: amount collected by bank 1100 Add: interest on interest bearing accounts 100 True Bank Balance 11770
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