Malik Corp.'s bank statement has an ending balance of $50,000. The deposits in transit were $6,000. NSF checks were $1,000. Checks outstanding at the end of the month were $3,000. Using the bank statement, what is the corrected cash balance?

Corrected cash balance =

Ending balance = $50,000

Deposit in transit = + $6,000

NSF Checks = - $1,000

Outstanding checks = - $3,000

Corrected cash balance = $52,000

Explanation:

To make Adjustments to the cash balance, follow these steps;

Ending Balance from Bank statement Add Deposits in Transit Deduct NSF checks Deduct Outstanding checks