Question

Marina Comp. deposits all receipts and makes all payments by check. The following information is available from the cash records:

MARCH 31 BANK RECONCILIATION

Balance per bank                                                           $26,746

Add: Deposits in transit                                                    2,100

Deduct: Outstanding checks                                            (3,800)

Balance per books                                                         $25,046

Month of April Results

                                                                                                       Per Bank            Per Books

Balance April 30                                                                             $27,995                $27,355

April deposits                                                                                      11,784                 13,889

April checks                                                                                    11,100                 10,080

April note collected (not included in April deposits)                                 3,000                    -0-

April bank service charge                                                                        35                    -0-

April NSF check of a customer returned by the bank

      (recorded by bank as a charge)                                                        900                    -0-

Calculate the amount of the April 30 deposits in transit, outstanding checks, and what is the April 30 adjusted cash balance? Show all work.

Answer 1

Question no.1)Deposits in transit and Questions no.2)Outstanding checks as on 30th April were answered in Image 1 and Question 3) for Adjusted balance as on 30 April was given in Image 2.

Deposits In Transit as on April 30 Opening balance of Deposits in transit as on 1st April Deposits in Transit on 30 April (13,889 – 11,784) 2,100 2,105 Answer to 1 4,205 Outstanding cheeks as on April 30 op, balance of Outstanding checks on April Both : (3,500) outstanding checks of April months (10,080-11, 100) (1020) outstanding checks on April Bott. (4,890)

③ Adjusted Cash balance on April 30. Balance Per Bank on 1st April 26,746 Add: Deposits in Transit 4,905 Deduct: Outstanding checks (4,890) Add April note collected, but not included 3,000 Deduct: April bank service charges not recorded in books Addo Baste Chalge on NSF checke 900 i answer to Question ③ 30,031