Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

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

ID: 2385186 • Letter: T

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 cleared the bank 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?

$38,500

$28,200

$31,900

$34,200

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

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