Brangelina Adoption Agency's general ledger shows a cash balance of $4,583. The balance of cash in the March-end bank statementis $7,325. The bank statement reveals the following information: checks outstanding of $2,793, bank service fees of $75, and interest earned of $24. Calculate the correct balance of cash at the end-of March.

The correct cash balance is $7,325

Explanation:

When preparing bank reconciliation, some items are added while some are subtracted depending on which balance is started with.

In this case, the cash balance will be started with and adjusted to the correct balance at the end of March

$

Cash balance as per ledger 4,583

Add: interest earned 24

Less: Bank service fee (75)

Adjusted cash balance 4,532

Add back outstanding check 2,793

Correct cash balance as at end of March 7,325