Benson Plastics Company deposits all receipts and makes all payments by check. T
ID: 2358569 • Letter: B
Question
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 $26,746 Add: Deposits in transit 2,100 Deduct: Outstanding checks (3,800) Balance per books $25,046 Month of April Results Per Bank Per Books Balance April 30 $27,995 $27,355 April deposits 11,784 13,889 April checks 11,100 10,080 April note collected (not included in April deposits) 3,000 -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.Explanation / Answer
Computation of deposits in transit
Deposits per book
$13889
Deposits per bank
$11784
Less: Deposits in Transit
$2100
Deposits mailed and received in April
($9684)
Deposits in transit, April 31
$4205
Computation of outstanding checks
Checks written per books
$10080
Checks cleared by bank in April
$11100
Less: Outstanding checks
$3800
Checks written and cleared in April
($7300)
Outstanding checks, April 31
$2780
Adjusted Cash Balance
April balance per bank
$27995
Add: Deposits in Transit
$4205
Less: Outstanding Checks
($2780)
Adjusted Cash Balance
$29420
Or
April Balance per books
$27355
Add: April note collected
$3000
Less: April Bank Service charge
($35)
Less: NSF check
($900)
Adjusted Cash Balance $29420
Deposits per book
$13889
Deposits per bank
$11784
Less: Deposits in Transit
$2100
Deposits mailed and received in April
($9684)
Deposits in transit, April 31
$4205
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