In the process of reconciling its bank statement for January, Maxi\'s Clothing\'

Question

In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information: Cash balance per company books on January 30 Deposits in transit at month-end Outstanding checks at month-end Bank service charges EFT automatically deducted monthly, not yet recorded by Maxi An NSF check returned on a customer account $6, 825 $2,220 $730 $46 800 475 The adjusted cash balance per the books on January 31 is: Multiple Choice $7,196 $6,663 $5,504 $6,994 $7724

Explanation / Answer

Adjusted cash balance per books is as calculated below:

So, correct answer is C.

Outstanding checks and deposit in transit is adjusted from bank.

Cash balance per company books on january 30 6,825 Less: bank Service charges -46 Less: EFT deducted monthly -800 Less: NSF check returned on customer account -475 Adjusted cash balance as per books 5,504

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