In the process of reconciling Marks Enterprises\' bank statement for September,

Question

In the process of reconciling Marks Enterprises' bank statement for September, Mr. Marks compiled the following information:

Cash balance per company books on Semptember 30- $6,255

Deposits in transit at month end- $1,340

Outstanding checks at months end- $660

Bank charge for printing new checks- $65

Note recievable and interest collected by bank on Mark's behalf- $730

A check given to Mark's during the month by a customer is returned by the bank as NSF- $520

The adjusted cash balance per the books on September 30 is?

Explanation / Answer

Cash balance as on 30th Sep = $6,255

Less: Deposit in Transit            = ($1,340)

Add: Outstanding Checks         =   $660

Less: Bank Charges                 =   ($65)

Add: Note Receivable and Int. =   $730

Less: Cheque returned as NSF = ($520)

So, Adjusted cash balance as per books= $5,720 (As on 30th September)

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