A company wishes to prepare its bank reconciliation for the month of December Th

Question

A company wishes to prepare its bank reconciliation for the month of December The following information is available: Company's cash balance at Dec 31 (before adjustments) $7,125 Bank's cash balance at Dec 31 (before adjustments) Interest earned on bank account Outstanding checks Bank service charges Deposits-in-transit NSF check 6,600 25 1,500 50 1,400 600 Question: After preparing its bank reconciliation, what is the adjusted cash balance the company should report in its accounting records at Dec 31? Answer: $ (do not use commas or decimal points)

Explanation / Answer

Answer - $6,500

Balance per bank $6,600 Less : Outstanding checks $1,500 Add : Deposits in transit $1,400 Adjusted cash balance $6,500

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