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21 April, 23:31

Shady Mills Company Cash account shows an ending balance of $1,200. The bank statement shows an ending balance of $770. Additional information includes: A.$30 Service charge B.$300 Deposit in transit C. 50 Outstanding checks

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  1. 22 April, 00:57
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    Adjusted Bank Balance $1,020

    Explanation:

    The question is incomplete, therefore, the complete question is as follows:

    Shady Mills Company Cash account shows an ending balance of $1200. The bank statement shows an ending balance of $770. Additional information includes:

    $30 Service Charge

    $300 Deposit in transit

    $50 Outstanding Checks

    What is the adjusted bank balance?

    Solution:

    The process for determining the Adjusted Bank Balance is a simple one, basically, we consider how the additional information affects the discrepancies between both the Cash balance and the bank balance.

    The Calculation is as follows:

    The Ending Bank Balance $770

    Add: Deposit in Transit $300

    Less: Outstanding Checks ($50)

    Adjusted Bank Balance $1,020

    Note that the Service Charge will be part of the adjustment of the Cash Balance.
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