MC Qu. 142 Clayborn Company deposits all cash receipts... Clayborn Company depos

Question

MC Qu. 142 Clayborn Company deposits all cash receipts... Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information: Deposit in transit $5,200 Outstanding checks $4,600 Bank service fees, not yet recorded by company $25 A NSF check from a customer, not yet recorded by the company $600 The adjusted cash balance should be:

MC Qu. 142 Clayborn Company deposits all cash receipts...

Clayborn Company deposits all cash receipts on the day they are received and makes all cash payments by check. At the close of business on May 31, its Cash account shows a debit balance of $17,025. Clayborn's May bank statement shows $15,800 on deposit in the bank. Determine the adjusted cash balance using the following information:

The adjusted cash balance should be:

Deposit in transit $5,200 Outstanding checks $4,600 Bank service fees, not yet recorded by company $25 A NSF check from a customer, not yet recorded by the company $600

Explanation / Answer

Clayborn Company Details Amt $ Balance on 31st May as per bank statement               15,800 Add : Deposit in Transit                  5,200 Less: Outstanding Check               (4,600) Adjusted cash balance as per bank book               16,400 Balance as per Cash Book as on 31st May               17,025 Less: Bank service fees not recorded in Cash GL                     (25) Less: NSF not recorded in Cash GL                   (600) Adjusted Cash Balance as per Cash book               16,400

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