The following data was extracted from the accounting records

The following data was extracted from the accounting records of Wise Company:

Adjusting journal entries made by Wise after preparing the December bank reconciliation were as follows:

dr Cash 1,995.00

dr Bank Service Charges 5.00

cr Notes Receivable 2,000.00

dr Cash 27.00

cr Advertising Expense 27.00

dr Accounts Receivable 450.00

cr Cash 450.00

dr Bank Service Charges Expense 42.50

cr Cash 42.50

Other information:

- The Balance Per books November 30 was $18,434.27

- Deposits in transit at December 31 were $2,145.40

- An error made by the bank on the December bank statement was detected. It had charged a cheque written by another bank client (Wiese Company) against Wise

Company\'s bank balance. The Bank has been notified and agrees it is indeed their error. The amount was $30.50

- Outstanding cheques were $1,938.53

- There were no other reconciling items not reflected above

The number that Wise will show for Cash on its December 31 balance sheet is:

Some other amount

$19,963.77

$19,726.40

$18,434.27

$20,011.44

Solution

correct option is \"A\" - 19963.77

Adjusted cash flow = unadjusted balance as per books + Dr in cash - cr for cash

= 18434.27+1995+27-450-42.5

= 19963.77