Bank reconciliation. Benson Plastics Company deposits all receipts and makes all

Question

Bank reconciliation. 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 $28,855 April deposits 10,784 13,889 April checks 11,600 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 900 -0- (recorded by bank as a charge) 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

a) i) Banks =$ 11784 -2100 = $ 9684 Deposits in Transit Books = $13889 Banks = - 9684 Deposits in Transit =$ 4205 ii) Banks =$ 11100 -3800 = $ 7300 Outstanding checks Books =$ 10080 Banks = - 7300 Outstanding checks =$ 2780 b) April 30 adjusted cash balance is $27,995 + 4205 - 2780 = $ 29420 or $27,355 + 3,000 - (35+900) = $ 29420 April 30 adjusted cash balance is $ 29420

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