PLEASE SHOW WORK Cash on the books as of April 30 was $499. Cash as shown on the

Question

PLEASE SHOW WORK

Cash on the books as of April 30 was $499. Cash as shown on the bank statement for the same date was $1,330.

A deposit of $160, representing cash receipts as of April 30, did not appear on the bank statement.

Outstanding checks totaled $240.

Bank service charges for April amounted to $9

The bank collected for Rawlins Company $840 (which includes $40 interest) on a note left for collection.

An NSF check for $80 from a customer, Joe Beck, was returned with the statement.

What amount would appear on the Balance Sheet? (Show your work)

        a. $1,250

        b. $1,330     

        c. $ 499

                  d. None of the above

Show work for correct ANSWER

Explanation / Answer

Balance per bank .............. $ 1,330
+ deposits in transit ................ 160
- outstanding checks .............. (240)
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
Adjusted bank balance ....... $ 1,250


Balance per books ............... $ 499
- bank service charges .............. (9)
+ note collected w/ interest ..... 840
- NSF check .......................... (80)
- - - - - - - - - - - - - - - - - - - - - - - - - - - -
Adjusted book balance ....... $ 1,250


$ 1,250 is the amount of cash that would be stated on the balance sheet.

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