6. Bankreconciliation Benson Plastics Company deposits all receipts and makes al

ID: 2589354 • Letter: 6

Question

6. Bankreconciliation

Benson Plastics Company deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION

Balance per bank $16,746

Add: Deposits in transit 2,100

Deduct: Outstanding checks (3,800)

Balance per books $15,046

Month of April Results

Per Bank Per Books

Balance April 30 $16,995 $17,355

April deposits 9,784 11,889

April checks 11,100 10,080

April note collected (not included in April deposits) 2,000 -0-

April bank service charge 35 -0-

April NSF check of a customer returned by the bank

(recorded by bank as a charge) 900 -0-

Instructions

(a) Calculate the amount of the April 30:

1. Deposits in transit

2. Outstanding checks

(b) What is the April 30 adjusted cash balance? Show all work.

Answer:

April 30, Deposits in transit : April deposits per book - (April deposits per bank - deposits in transit for march month)

Deposits in transit : $11889 - ($9784 - $2100)

Deposits in transit : $4205

Outstanding checks: April checks per book -( april checks per bank - (outstanding checks))

Outstanding checks : $10080 -($11100 - $3800)

Outstanding checks : $2780

Answer B: April 30 adjusted balance : $18420

($16995 + $4205 - $2780) = $18420

($17355 +$2000 -$35-$900) = $18420

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