The April 30 bank statement for Trimble Corporation shows an

The April 30 bank statement for Trimble Corporation shows an ending balance of $35,192. The unadjusted cash account balance was $29,150. The accountant for Trimble gathered the following information:

There was a deposit in transit for $4,406.

The bank statement reports a service charge of $59.

A credit memo included in the bank statement shows interest earned of $215.

Outstanding checks totaled $11,362.

The bank statement included a $1,070 NSF check deposited in April.

What is the true cash balance as of April 30?

1. $28,236

2. $32,642

3. $27,166

4. $32,427

Solution

1. $28,236

True cash balance as of April 30 = Unadjusted bank balance + Deposit in transit - Outstanding checks = $35,192 + $4,406 - $11,362 = $28,236