Tyler, Inc. had the following bank reconciliation at March 31, 2010: Balance per

Question

Tyler, Inc. had the following bank reconciliation at March 31, 2010:

Balance per bank statement, 3/31/10 $37,200
Add: Deposit in transit 10,300
____________
47,500
Less: Outstanding checks 12,600
______________
Balance per books, 3/31/10 $34,900


Data per bank for the month of April 2010 follow:

Deposits $46,700
Disbursements 49,700

All reconciling items at March 31, 2010 in April. Outstanding checks at April 30,2010 totaled $6,000. There were no deposits in transit at April 30,2010. What is the cash balance per books at April 30, 2010?

a $28,200
b $31,900
c $34,200
d $38,500

Explanation / Answer

The balance per books for 03/31 is 34,900. This should be increased by the deposits But the deposits included the deposit in transit from 03/31 so need to be deducted. So 46,700 - 10,300 = 36,400. The disbursements should decreased the balance per books for 03/31. But the disbursements included the outstanding chks, so 49,700 - 12,600 + 6,000 = 43,100. Note that the 6,000 outstanding checks are NOT included in previous month thats why we have to add it in. Balance 03/31 34,900 Deposits 36,400 Disbursements (43,100) Balance 04/30 28,200 letter a

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