At April 30, Skysong, Inc. has the following bank information: Cash balance per bank $3000 Outstanding checks $230 Deposits in transit $450 Credit memo for interest $10 Bank service charge $20. What is Skysong adjusted cash balance on April 30?

A) $3230.

B) $2780.

C) $3220.

D) $3210.

The answer is D) $3210

Explanation:

Before taking the given transactions into account we start of with the Cash balance of $3000.

We have outstanding checks of $230. We need to deduct these check from the balance. 3000 - 230 = 2770

We have deposits in transit, meaning this is money we have received but has not yet reflected. We need to add the $450 to the cash balance.

The balance is now updated to $ 3220.

We have a credit memo from the bank. This is interest owed to us. We will add the $10 to our balance. $ 3230

Finally we need to subtract the service charge of $ 20.

We will be left with a balance of 3210.

Therefore the answer is D) $3210