Franklin Company deposits all cash receipts on the day they are received and mak

Question

Franklin Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on August 31, its Cash account shows a debit balance of $19,162. Franklin's August bank statement shows $19,037 on deposit in the bank. Determine the adjusted cash balance using the following information:

The adjusted cash balance should be:

Deposit in transit $ 6,300 Outstanding checks $ 5,100 Bank service fees, not yet recorded by company $ 110 The bank collected on a note receivable, not yet recorded by the company $ 1,185

Explanation / Answer

Balance as per book (unadjusted) 19162 Add:The bank collected on a note receivable, not yet recorded by the company 1185 less:Bank service fees, not yet recorded by company (110) Adjusted cash balance as per book 20237

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