Question

Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $27,861 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Deposit in transit 3,350 Outstanding checks 1,350 Additionally, a $46 check written and recorded by the company correctly, was recorded by the bank as a $64 deduction. The adjusted cash balance per the bank records should be: Multiple Choice $23,179 $29,879 $29,861 $32,579 $29,843

Answer 1

1 Particulars Amount 2 Balance as per Bank statement $ 27,861 3 Add: Deposits in transit $ 3,350 4 Add: Bank error ($64-$46) $ 18 5 Less: Outstanding checks $ -1,350 6 Adjusted cash balance per the bank records $ 29,879 7 8 Hence, the correct option is $29,879.

B А 1 Particulars Amount 2 Balance as per Bank statement 27861 3 Add: Deposits in transit 3350 4 Add: Bank error ($64-$46) =64-46 5 Less: Outstanding checks - 1350 6 Adjusted cash balance per the bank records =SUM(B2:35) 7 8 Hence, the correct option is $29,879.