Easton Co. deposits all cash receipts on the day they are received and makes all
ID: 2396842 • Letter: E
Question
Easton Co. deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on June 30, its Cash account shows a debit balance of $62,209. Easton's June bank statement shows $59,949 on deposit in the bank. Determine the adjusted cash balance using the following information:
The adjusted cash balance should be:
Multiple Choice
$64,349
$62,224
$62,190
$62,243
Deposit in transit $ 4,400 Outstanding checks $ 2,125 Check printing fee, not yet recorded by company $ 19 Interest earned on account, not yet recorded by the company $ 34Explanation / Answer
The Adjusted Cash Balance should be $62,224
Book Balance
$62,209
Add: Check printing fee, not yet recorded by company
34
Less: Interest earned on account, not yet recorded by the company
(19)
Adjusted Cash Balance
62,224
Book Balance
$62,209
Add: Check printing fee, not yet recorded by company
34
Less: Interest earned on account, not yet recorded by the company
(19)
Adjusted Cash Balance
62,224
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