Homework SourseThe Umbrella Corporation is performing their monthly bank st
The Umbrella Corporation is performing their monthly bank statement reconciliation. The bank statement cash balance is $11,056. The unadjusted cash balance per the books is $7,916. The following information is known: Deposits in Transit - $3475 Interest earned on their account - $5 Service Charges for new checks - $30 Outstanding Checks - $7,540 An NSF check - $900 What is the true cash balance (for either bank or book)?
Solution
Bank reconciliation :
True cash balance for either bank or book = $6991
| Balance as per bank statement | 11056 |
| Add: Deposit in transit | 3475 |
| 14531 | |
| Less; Outstanding checks | -7540 |
| Adjusted cash balance as per book | 6991 |
| Unadjusted cash balance as per book | 7916 |
| Add: Interest earned | 5 |
| 7921 | |
| Less: NSF Checks | -900 |
| Less: Service charges | -30 |
| Adjusted cash balance as per book | 6991 |
